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 released to sell. This has to do with 30% greater than the about 27,000 applications acquired throughout the May BTO exercise when 4,583 units were introduced, notes Christine Sun, higher vice head of research and analytics at OrangeTee & Tie.
Among the condos in non-mature estates released, the property in Woodlands saw the highest possible application rates at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and also 11.7 for four-room houses. On the other hand, flats at the projects introduced in Choa Chu Kang saw application rates between 2.0 to 2.6, while the project in Jurong East saw application rates in between 4.1 to 6.7.
Sun thinks the greater range of applicants might reflect more buyers relying on the BTO market, given that BTO units are currently more economical contrasted to increasing costs of resale condos and also exclusive residences. “There have not been lots of brand-new exclusive house open in recent months. For that reason, buyers now have lesser housing options, especially for cash-strapped purchasers,” she includes.
The two deals introduced under the prime location 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 flats. A total of 8,883 applications were received for the 1,651 PLH units launched.
Sun associates the appeal of the properties in developed estates to the adequate features and proximity to MRT terminals. “The Tampines property additionally has one of the shortest finalization periods, around 36 months,” she adds.
She incorporates that the 10-year minimum rent period for PLH flats as well as a lot more rigid marketing criteria might have hindered purchasers. PLH flat owners undergo a clawback aid of 6% when they sell their homes for the first time.
Big condos in developed estates saw the highest possible applying rates. 4- and five-room residences at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 and also 177 offered flats, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments registered a 12.6 application rate, while five-room and also Three-Generation (3Gen) apartments totalling 372 units received a 17.5 application rate.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH kick off. “Perhaps the pool of buyers has shrunk given that many PLH version flats have been launched over the past year, and some individuals may have currently acquired a unit in the earlier BTO exercises,” she says.