Close to 5,000 BTO flats launched in August, including 2 prime projects

THE Housing and Development Board (HDB) has launched 4,993 flats for sale under its August build-to-order (BTO) exercise.

The flats are spread across 7 projects in both mature and non-mature estates Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Tampines and Woodlands.

Two of these projects are in Bukit Merah under the Prime Location Housing (PLH) model, which was launched in October 2021 and applies to flats built in prime, central locations.

The Bukit Merah PLH projects comprise Alexandra Vale and Havelock Hillside, where prices excluding grants start from S$370,000 for a 3-room flat from S$531,000 for a 4-room flat.

Located along Alexandra View near the Redhill MRT station, the Alexandra Vale project will offer a total of 782 BTO units comprising 600 4-room flats and 182 3-roomers across 2 residential blocks ranging from 41 to 50 storeys high. One of the blocks will also house 2-room rental flats to “ensure an inclusive living environment”, according to HDB.

ERA Realty’s head of research and consultancy Nicholas Mak says including such rental flats would cut down the number of units available to Alexandra Vale homebuyers, while also potentially reducing the “snob appeal” of PLH flats.

The Havelock Hillside development will be situated along Havelock Road near the upcoming Havelock MRT station on the Thomson-East Coast Line. It will comprise 2 residential blocks at 42-and 45-storeys tall, with a total of 869 units made up of 698 4-room flats and 171 3-roomers.

Both PLH projects are served by the Central Expressway and in close proximity to Zhangde Primary School, Gan Eng Seng Primary School, Gan Eng Seng School, and Crescent Girls’ Secondary School.

Transacted prices of nearby resale flats for the 2 projects range from S$590,000 to S$720,000 for a 3-room flat, and S$750,000 to S$1 million for resale flats for a 4-room flat.

Up to 20 per cent of the PLH flats for both projects will be set aside for first-timer families and up to 2 per cent for second-timer families under the Married Child Priority Scheme. HDB highlights this allocation as two-thirds of the usual quotas, which it believes will provide more opportunities for Singaporeans who do not have family members living near the area.

As PLH flats are priced with additional subsidies, owners of these flats will have to return to HDB a percentage of the resale price or valuation, whichever is higher, upon the sale of their flats.

The amount to be recovered from flat buyers for both Havelock Hillside and Alexandra Vale is fixed at 6 per cent, regardless of when the flats are sold in future.

“PLH flats do not seem that exclusive anymore,” commented Huttons Asia’s senior research director Lee Sze Teck, noting that the latest launch brings the number of PLH BTO projects since November 2021 to 6.

Lee suggests that Alexandra Vale site could have been used for private housing as the area is surrounded by such residences, “but the government decided to push out a BTO project for inclusivity”. He also believes the project is priced slightly lower than Bukit Merah Ridge possibly due to its distance from the city centre.

Huttons is expecting an overall application rate of between 4 and 6 for both Bukit Merah BTO projects. The agency also foresees potential for 2-3 PLH BTO project launches in Kallang/Whampoa and Queenstown this November. 

In its press statement on Tuesday (Aug 30), HDB said its latest launch of BTO flats are priced with a “generous subsidy” and considerably lower than the transacted prices of comparable resale flats nearby.

In non-mature estates, prices before housing grants start from S$97,000 for a 2-room flexi flat in Jurong East, S$188,000 for a 3-room flat in Woodlands, and S$277,000 for a 4-room flat in Choa Chu Kang, while prices for 5-room flats offered in Choa Chu Kang start from S$390,000.

ERA’s Mak highlights Woodlands as a likely non-mature estate area with potential to garner more attention from home buyers, as BTO flats there are located within a 200-metre proximity from the new Woodlands South MRT along the Thomson East-Coast Line.

“Furthermore, the Muslim community may find this site appealing as it is highly accessible to a nearby mosque, situated just 50 metres away,” said Mak.

Among non-mature estates, at least 85 per cent of the 3-room BTO flats and 95 per cent of 4-room units and larger will be set aside for first-timer families, up from current levels of at least 70 per cent and 85 per cent, respectively. Up to 65 per cent of the non-senior 2-room flexi flats will be set aside for first-timer singles, representing an increase from up to 50 per cent currently.

To OrangeTee & Tie’s senior vice president of research and analytics, Christine Sun, this policy change means more first-timers may switch to applying for flats in non-mature estates to increase their chances of securing a unit.

“For second-timers, they have a slimmer chance of securing a BTO flat in non-mature estates. Therefore, some may turn to the secondary market, and the increased demand may push prices of resale flats higher in some locations,” commented Sun.

Prices in mature estates before grants start from S$198,000 for a 2-room flexi flat in Ang Mo Kio, and S$381,000 and S$520,000 for a 4-room and 5-room flat, respectively, in Tampines.

At least 95 per cent of BTO flat supply in mature estates have already been set aside for first-timer families.

By utilising the Enhanced CPF Housing Grant (EHG) of up to S$80,000, HDB said eligible first-timer families would pay as little as S$113,000 for a 3-room flat in Woodlands and S$217,000 for a 4-room flat in Choa Chu Kang. 

“A wide selection of flats, ranging from 2-room flexi to 5-room and 3Gen flats, is offered in this BTO exercise to meet diverse housing needs,” added the agency in its press statement.

According to the agency, most home buyers will be able to afford the flats on offer as they will be using less than 25 per cent of their monthly household income to pay for their loan installment. This means that first-time flat buyers may service their mortgage using their monthly CPF (Central Provident Fund) contributions with minimal or no cash outlay, said HDB.

Home buyers looking to move into their flats sooner are also urged to consider BTO projects in Choa Chu Kang, Tampines and Woodlands, which have the shortest waiting times at 3.8 years or less.

Sun of OrangeTee & Tie is expecting strong demand for Central Wave @ AMK in Ang Mo Kio and Sun Plaza Spring in Tampines, given their “excellent location” in mature estates.

She commented: “There are not many new 5-room flats released in recent launches, especially in mature estates. As both projects offer 5-room flats, they will be popular among families who desire bigger living spaces.”

She also flagged the possibility of more applicants for the Ang Mo Kio project as around 10 per cent of the units have been set aside for residents affected by HDB’s Selective En-bloc Redevelopment Scheme (Sers).

Lee of Huttons however found it “odd” that no 3-room flats were offered in the Central Weave @ AMK mature town project.

“While HDB had allowed residents affected by Sers in Ang Mo Kio to apply for flats at Central Weave, omitting the provision of 3-room flats will mean the 364 affected Sers owners of 3-room flats in Ang Mo Kio will have to downsize or buy a bigger flat at Central Weave @ AMK. This may be seen as excluding the 3-room Sers residents the opportunity to apply for a better-located flat,” he said.