2,500 prime BTO flats launched; 3 and 4-room units priced at S$369,000-S$737,000

THE Housing and Development Board (HDB) launched 4,583 Build-To-Order (BTO) flats on Friday (May 27) across 5 projects, including 1 each in Bukit Merah and Queenstown under the Prime Location Public Housing (PLH) model.

The other 3 projects are in the mature estate of Toa Payoh and non-mature estates of Jurong West and Yishun. The latter 2 projects also come with some of the shortest waiting times among all projects launched in the May 2022 BTO exercise - at 3.8 years or less, said HDB.

The projects at Bukit Merah Ridge in Bukit Merah, and Ghim Moh Ascent in Queenstown, are the third and fourth projects to be launched under the PLH model. The model aims to keep new public housing in prime and central locations affordable and accessible, and comes with stricter buying and selling conditions, including a 10-year minimum occupation period and a subsidy clawback at the first resale transaction.

Bukit Merah Ridge is bounded by Bukit Merah View, Henderson Road, Tiong Bahru Road and Lower Delta Road, and comprises 5 residential blocks ranging from 29 to 48 storeys in height. There are 1,669 units of 3- and 4-room flats available.

Prices range from S$377,000 to S$509,000, excluding grants, for a 3-room flat, and S$540,000 to S$737,000 for a 4-room flat.

Ghim Moh Ascent is bounded by Ghim Moh Road, Ghim Moh Close and the Rail Corridor, and located in the Health District @ Queenstown - a first-of-its-kind collaborative project to create integrated solutions that will enhance the health and well-being of residents across their life stages.

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The development has 867 flats of 3- and 4-room units across 4 blocks - 2 are 40 storeys high and the other 2 are of varying height ranging from 8 to 31 storeys.

Prices range from S$369,000 to S$481,000 for a 3-room flat and S$511,000 to S$691,000 for a 4-room flat.

These 2 PLH projects are priced lower than those in last November's Rochor BTO project - the first under the PLH model - where prices start from S$409,000 for a 3-room flat and S$582,000 for a 4-room flat.

But they are higher than the second PLH project in Kallang/Whampoa, where prices started from S$353,000 for a 3-room flat and S$488,000 for a 4-room flat.

Overall, HDB is on track to launch up to 23,000 new flats in 2022. Nicholas Mak, head of research and consultancy at ERA Realty, noted that the strong demand for HDB resale flats and skyrocketing HDB resale prices have prompted the Singapore government to significantly increase the supply of new flats. The number of BTO flats launched in May 2022 is about 13.8 per cent higher than that in February 2022.

“Every household that commits to buy a BTO flat would result in one fewer household that would buy a resale flat. If more buyers are drawn to the BTO projects, it could gradually cool the HDB resale demand and prices to a more sustainable rate of growth.”

Analysts expect strong demand for the 2 latest PLH projects which are both located in mature estates, near public transport nodes and close to schools. 

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, noted that the Bukit Merah site is zoned under District 3, categorised as the Rest of Central Region, a proxy for the city fringe area. Meanwhile, the Queenstown site is in District 10, according to the Urban Redevelopment Authority, and categorised under the Core Central Region - a prime district for many luxury homes.

Huttons Asia’s senior director for research, Lee Sze Teck, estimates that the overall application rate for the 2 PLH BTO projects could exceed 10. 

“Potential applicants might take a cue from the 2 previous PLH projects that the restrictions are not a deterrent. In fact, the additional subsidies will make buying a flat in a mature estate easier,” he said, adding that their long completion period of 5 years is unlikely to deter applicants.

Among the 4 PLH BTO projects launched to date, the Queenstown project is located furthest away from the city centre (considered as the Raffles Place MRT interchange station in this analysis), said ERA’s Mak. He notes that the “straight-line distance” of the project from the city centre is similar to that of the Bishan MRT station from the city centre. 

“There are also a significant number of million-dollar HDB resale flats transacted in Bishan. Hence, it begs the question: will the future BTO projects in Bishan be launched under the PLH model?”

As for the other 3 BTO projects, the one in Toa Payoh is Kim Keat Heights, which will comprise 2 blocks ranging from 27 to 36 storeys. Both blocks will house some rental flats. There are 385 units of 2-, 3- and 4-room flats available, at prices starting from S$289,000 for a 3-room flat and S$420,000 for a 4-room flat.

The Jurong West project is Lakeside View, with 7 blocks ranging from 11 to 18 storeys and 1,016 units of 2-room Flexi, 3-, 4-, and 5-room flats. Prices start from S$215,000 for a 3-room flat, S$320,000 for a 4-room flat and S$412,000 for a 5-room flat.

Finally in Yishun, Yishun Beacon will house 5 blocks that are 14 storeys tall, with 646 units of 2-room flexi, 4- and 5-room flats. Prices start from S$328,000 for a 4-room flat and S$485,000 for a 5-room flat.

Analysts say these non-PLH BTO projects are also appealing. Ismail Gafoor, chief executive of PropNex Realty, pointed out that the Toa Payoh site is attractively located in a mature estate, the Jurong West project is near the Lakeside MRT station and next to the future Jurong Lake District, and the Yishun development offers the shortest estimated completion time of 39 months.   

Meanwhile, another 1,952 Sale of Balance Flats (SBF) units across various towns/estates are also being offered for sale, with about 34 per cent completed and the rest in various stages of construction.

Applications for the May 2022 BTO and SBF Exercises close on Jun 2, 2022.

Come August, HDB will offer about 4,900 BTO flats in towns/estates such as Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Tampines and Woodlands for sale. In November, another 9,500 BTO flats in towns/estates such as Bukit Batok, Kallang Whampoa, Queenstown and Yishun will be launched.