Two prime location projects in Kallang, Tanglin Halt launched in October BTO exercise

SINGAPORE: Two prime location projects located in Kallang and Tanglin Halt were launched in the October Build-to-Order (BTO) exercise.

The projects - Verandah @ Kallang and Tanglin Halt Cascadia - comprise 2,116 units, part of the total of 6,800 flats for sale under this month's exercise, the Housing and Development Board (HDB) said on Wednesday (Oct 4).

Six of the eight projects have a waiting time of four years and below.

Also launched in this exercise are those in mature estates such as Rajah Residences and Tenteram Vantage in Kallang/Whampoa, and non-mature estates such as Plantation Edge I and II in Tengah and Rail Green I and II@CCK in Choa Chu Kang.

As prime location projects, Verandah @ Kallang and Tanglin Halt Cascadia are priced with additional subsidies on top of the “substantial market discounts” applied across all BTO flats, HDB said.

Owners will have to return 6 per cent of the resale price or valuation – whichever is higher – upon the sale of their flats.

Verandah @ Kallang consists of five residential blocks with 1,143 units on offer. This includes two-room Flexi, three-room and four-room flats. Excluding grants, prices start from S$193,000 for a two-room Flexi, while three-room and four-room units start from S$368,000 and S$535,000 respectively.

According to OrangeTee and Tie’s senior vice-president of research and analysis Christine Sun, the project’s proximity to Kallang MRT station, Singapore Sports Hub and Kallang Wave Mall may make it the most attractive of the three projects launched in the Kallang/Whampoa area.

“We anticipate more people applying for the plot at Kallang/Whampoa to try to get a unit at Verandah @ Kallang.”

The other prime location housing project, Tanglin Halt Cascadia, comprises four residential blocks, with a total of 973 units of three-room and four-room flats.

Excluding grants, three-room flats start from S$364,000, while a four-room flat will cost at least S$537,000.

Ms Sun expects “keen demand” for these flats, as Queenstown has always been popular among buyers.

“As a mature estate, many amenities exist, such as a short walk from Commonwealth MRT station, near a food court and supermarket,” she said, also noting its proximity to the Rail Corridor.

The location may also be popular with residents working in the nearby one-north area, she added.

Twenty per cent of the flats in the two prime location projects will be set aside for first-timer families, while 2 per cent will be for second-timer families under the Married Child Priority Scheme. This is two-thirds of the usual quotas.

TIGHTER RULES FOR NON-SELECTION

HDB is tightening the rules for non-selection of flats starting from this launch, to ensure more efficient flat allocation so that those who urgently need a house can secure one more quickly.

These changes will not apply to applications submitted in earlier exercises.

First-timer families, including those under the First-Timer (Parents and Married Couples) category, who incur one non-selection count will be considered second-timers for one year in the computer ballot.

Meanwhile, second-timer families and first-timer singles who incur one non-selection count will have to wait one year before they can submit an application for a new flat.

Adjustments will also be made to the application process from this exercise onwards.

Applicants for BTO or sale of balance flats (SBF) who have received a queue position within the flat supply will not be eligible to apply for a flat in subsequent exercises until after their flat booking appointment.

“This will ensure that we do not crowd out other BTO applicants who have not secured a queue position and improve their chances in securing a flat,” HDB said.

For applicants who incur a non-selection count in a BTO or SBF exercise, the housing board will cancel any existing applications made for subsequent exercises.

“For example, those who are able to apply for both the October 2023 and December 2023 exercises, and subsequently incur a non-selection count for their October 2023 flat application will have their December 2023 flat application cancelled,” it said.

"While such applicants can continue to apply for future BTO/SBF sales exercises, the non-selection count will be accounted for in their applications."

This is to prevent "unfair advantage" for such applicants, who would otherwise enjoy multiple balloting opportunities and greater priority for their applications, said HDB.

Ms Sun expects a drop in applicants due to these tightened rules, as “ those not ready to commit to a purchase or are uncertain about their buying decision will unlikely apply for a flat now”.

These may include young couples unprepared for marriage or considering other housing options, she added.

“Moreover, applicants will need to put more thought into their decisions,” she said. “They must consider carefully if they will still proceed with the purchase if they obtain an undesirable queue number.

“Young couples who do not want to jeopardise their future chances of getting a well-located flat will likely not apply flippantly now.”

NEW PRIORITY CATEGORY

A new priority category of buyers, called the First-Timer (Parents and Married Couples) category, will also be effective starting from the October exercise.

HDB said this enhances the support for this subset of first-timer families buying their first home, as well as to help them settle down more quickly.

Applicants need not submit a request  as HDB will assess and inform buyers on their eligibility after they submit their flat application.

“On top of receiving an additional ballot chance, FT(PMC) applicants applying for four-room and smaller BTO flats in non-mature estates will be given first priority under the Family and Parenthood Priority Scheme (FPPS),” HDB said.

“This means that they will be shortlisted ahead of all other FPPS-eligible applicants, and stand a higher chance of being invited to select a flat.”

Up to 40 per cent of the public flat supply in each BTO exercise is set aside for the FPPS, it added.

The housing board advised applicants who wish to improve their chances of securing a flat to apply for one in the non-mature estates of Choa Chu Kang and Tengah, where at least 95 per cent of the larger units are set aside for first-timer families.

Applicants should also look out for projects with lower application rates to improve their chances of success, HDB said. They should also plan out their finances and work out their budget so that they can select a suitable flat based on their budget, needs and preferences.

With fewer applicants expected to apply after the non-selection penalty is implemented, serious buyers and FT(PMC) applicants may have a higher chance of getting a flat, said Ms Sun.

"Moreover, first-time families with children are given an extra ballot, and more flats will be set aside. However, this group of buyers may be small," she said.

Eligible first-timer families can also benefit from an enhanced Central Provident Fund (CPF) Housing Grant of up to S$80,000.

Flat applications can be made online via the HDB Flat Portal from Wednesday to Oct 10.

The next BTO exercise will be in December. There will be about 6,000 flats on offer, located in towns and estates such as Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah and Queenstown.