Kallang, Bidadari units most popular in latest BTO exercise
Photo: Google maps screencap
SINGAPORE — The attractive locations of the projects on offer have helped drive up demand for the year’s final Build-To-Order (BTO) exercise, reversing a trend of falling overall subscription rates in 2016.
Applications closed at midnight yesterday for the latest sales exercise, which comprised units in Punggol as well as the mature estates of Bedok, Bidadari and Kallang. Over the past week, a total of 5,110 BTO units spread across nine projects were put up for sale, on top of 5,008 Sale of Balance (SBF) flats.
As of 5pm, there were 11,925 applicants vying for 3,581 BTO three-room and bigger units — translating to a subscription rate of 3.3. This year’s first BTO exercise in February drew an application rate of 4.7 for such flat types. The subsequent exercises in May and August saw rates of 3.7 and 2.3 respectively.
In particular, the four-room units at Kallang Residences were the most popular, even though they were pricier than the other projects: More than 1,700 applicants balloted for 158 units, with keen interest from second-timers.
The subscription rate of second-timers for these flats was 53.9. The cost of a four-room flat in the Kallang project is at least S$497,000, excluding grants.
In general, there was strong demand from second-timers for units in the mature estates.
For example, the subscription rates from this group for three-, four- and five-room flats in Bedok were all above 20 while the projects in Bidadari received almost 3,700 applications from second-timers for about 590 four-room flats.
Analysts attributed the strong demand to the appealing locations. Century 21 chief executive officer Ku Swee Yong said: “Second-timers … will be lured to come out and buy when there are attractive properties.”
Armed with greater spending power than first-time buyers, this group, which typically comprises upgraders, does not mind forking out more for a home that is centrally located, he said.
Ms Caroline Koh, manager of research and consultancy at Suntec Real Estate Consultants, added: “Second-time buyers may currently be living further away from the city, and they may wish to upgrade to a flat nearer to the Central Business District.”
In April, National Development Minister Lawrence Wong said that after this year’s increased supply of about 18,000 BTO flats to accommodate recent policy changes, his ministry will gradually taper off the launch of such units to achieve a more sustainable level over the medium term.
He also noted that applications by first-time home-buyers had stabilised at a rate of about 1.6 over the previous 12 months.
The subscription rate for first-timers for three-room and bigger flats stood at 2.6 as of 5pm yesterday.
Mr Ku said he expects the supply of BTO flats to be moderated next year, as demand “has been largely satiated”.
Nevertheless, Ms Koh believed that there will still be strong demand for the first exercise in February next year, when the Housing and Development Board will offer about 4,100 flats in Clementi, Punggol, Tampines and Woodlands.
“There seems to be a good selection of flats,” she said.
