August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
While PLH units were oversubscribed, Sun states the application rate was less than in previous PLH launches. “Maybe the pool of purchasers has reduced considering that numerous PLH model apartments have been launched over the past year, and also some individuals might have currently bought a unit in the earlier BTO exercises,” she opines.
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units introduced to buy. This has to do with 30% more than the approximately 27,000 applications acquired during the May BTO exercise when 4,583 units were launched, indicates Christine Sun, senior vice head of research and analytics at OrangeTee & Tie.
She includes that the 10-year minimum rental duration for PLH apartments as well as extra strict marketing standards might have deterred buyers. PLH apartment owners go through a clawback subsidy of 6% when they market their homes for the first time.
Sun associates the popularity of the properties in mature estates to the sufficient facilities and also proximity to MRT terminals. “The Tampines property likewise has one of the shortest completion periods, around 36 months,” she adds.
Among the apartments in non-mature estates launched, the project in Woodlands saw the greatest application rates at 6.6 for two-room Flexi apartments, 8.1 for three-room apartments, and 11.7 for four-room apartment or condos. At the same time, flats at the projects launched in Choa Chu Kang saw application rates between 2.0 to 2.6, while the project in Jurong East saw application rates between 4.1 to 6.7.
Big flats in mature estates saw the greatest applying rates. 4- and five-room homes at Sun Plaza Spring in Tampines saw application rates of 22.3 as well as 26.3 for the 150 as well as 177 available flats, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats signed up a 12.6 application rate, while five-room and also Three-Generation (3Gen) flats totalling 372 units gained a 17.5 application rate.
The two deals launched under the prime place public housing (PLH) model– Havelock Hillside and Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room apartments as well as 6.1 for four-room units. An overall of 8,883 applications were obtained for the 1,651 PLH units opened.
Sun believes the better number of clients might mirror extra buyers looking to the BTO market, considered that BTO units are currently much more cost effective compared to rising rates of resale flats and personal houses. “There have actually not been lots of new private home launches in recent months. Consequently, purchasers currently have fewer real estate choices, especially for cash-strapped buyers,” she includes.