August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units launched available. This is about 30% greater than the about 27,000 applications received throughout the May BTO exercise when 4,583 units were launched, notes Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
Sun attributes the appeal of the properties in developed estates to the enough services and also closeness to MRT stations. “The Tampines property likewise has one of the fastest completion periods, around 36 months,” she includes.
Sun thinks the better amount of clients may reflect more buyers turning to the BTO market, considered that BTO units are presently a lot more affordable contrasted to climbing prices of resale rentals as well as exclusive houses. “There have actually not been lots of new private residence introduce in recent months. As a result, customers currently have lesser housing options, particularly for cash-strapped purchasers,” she includes.
Both projects launched under the prime area public housing (PLH) version– Havelock Hillside as well as Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room apartments as well as 6.1 for four-room units. A total amount of 8,883 applications were obtained for the 1,651 PLH units released.
Among the apartments in non-mature estates released, the property in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi flats, 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 in between 2.0 to 2.6, while the project in Jurong East saw application rates in between 4.1 to 6.7.
Big condos in mature estates saw the highest possible applying rates. 4- and also five-room apartments at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 as well as 177 readily available apartments, 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) apartments completing 372 units received a 17.5 application rate.
While PLH units were oversubscribed, Sun claims the application rate was less than in previous PLH launches. “Possibly the pool of customers has actually diminished because numerous PLH model flats have actually been launched over the past year, and also some people might have already gotten a unit in the earlier BTO exercises,” she suggests.
She includes that the 10-year minimum rental period for PLH flats and much more stringent marketing requirements might have discouraged buyers. PLH apartment owners go through a clawback aid of 6% when they sell their houses for the very first time.