21-03-2012, 06:43 AM
The Straits Times
Mar 21, 2012
BTO launch near DBSS site upsets some
BTO units usually cheaper, so some who opted for DBSS flats are unhappy
By Daryl Chin
LAST October, EL Development launched the Trivelis - a Design, Build and Sell Scheme (DBSS) project - in Clementi.
About 80 per cent of the 888 units of these public flats built by the private developer have been snapped up. Prices averaged $650 per sq ft.
In January this year, the HDB announced that a Build-To-Order (BTO) project of 670 units would be rolled out in Clementi - right next to Trivelis.
The news has made Trivelis buyers like Mr Low Tian Chye all hot and bothered. The businessman had booked a five-room unit for $706,000, and is now having second thoughts.
The reason? BTO flats, built by the HDB, are usually priced lower than DBSS ones.
Analysts said prices in the Clementi BTO project could be as much as 25 per cent cheaper than its DBSS neighbour.
However, they also warned that those who drop out run the risk of not getting the BTO units when they are put up for sale - given the popularity of Clementi as a mature estate.
Mr Low, 65, said: 'I didn't mind paying the $706,000 as the location is good but I would have gone for the BTO flats if I had known earlier.'
He has not yet exercised the option to buy his Trivelis unit. If he pulls out now, he will lose 1.25 per cent of the purchase price, or $8,900. If he had already exercised the option, the penalty would be 20 per cent of the cost of the flat.
EL Development's spokesman Lim Yew Soon said about 100 others who had booked a Trivelis unit have also not exercised their options.
Mr Lim said that, so far, two Trivelis buyers have pulled out of the deal and paid the 1.25 per cent penalty, citing the upcoming BTO launch as a reason.
The reason for the rest who have backed out - about 23 others - was linked to financial and eligibility factors.
Mr Lim is aware of the unhappiness on the ground, having received numerous e-mail from applicants. He said, however, that EL Development found out about the upcoming BTO project only in January, 'the same as everybody else'.
Dennis Wee Group spokesman Lee Sze Teck said it is rare for new flats to be launched close to DBSS units as the latter are generally in better locations such as mature estates. 'This could be a side effect of the Government's move to have more new flats in mature estates.'
At the Trivelis, three-room flats cost from $375,000 to $470,000, four-room units from $530,000 to $650,000, and five-room types from $658,000 to $770,000.While the exact prices are not out yet, analysts said the BTO flats might be up to 25 per cent cheaper.
'But, bear in mind, these are not apple- to-apple comparisons,' said PropNex chief executive Mohamed Ismail. 'A person who buys the cheaper BTO flat might still need to dip into his cash reserves to spend on renovations if the finishings are not as nice as the Trivelis'.'
He added that a Trivelis unit is a surer bet than the Clementi BTO, which will likely be oversubscribed.
Meanwhile Mr Low has not yet decided which road he will take. He hopes, however, that the developer will consider giving some 'discounts or concessions, to make the decision easier'.
darylc@sph.com.sg
Mar 21, 2012
BTO launch near DBSS site upsets some
BTO units usually cheaper, so some who opted for DBSS flats are unhappy
By Daryl Chin
LAST October, EL Development launched the Trivelis - a Design, Build and Sell Scheme (DBSS) project - in Clementi.
About 80 per cent of the 888 units of these public flats built by the private developer have been snapped up. Prices averaged $650 per sq ft.
In January this year, the HDB announced that a Build-To-Order (BTO) project of 670 units would be rolled out in Clementi - right next to Trivelis.
The news has made Trivelis buyers like Mr Low Tian Chye all hot and bothered. The businessman had booked a five-room unit for $706,000, and is now having second thoughts.
The reason? BTO flats, built by the HDB, are usually priced lower than DBSS ones.
Analysts said prices in the Clementi BTO project could be as much as 25 per cent cheaper than its DBSS neighbour.
However, they also warned that those who drop out run the risk of not getting the BTO units when they are put up for sale - given the popularity of Clementi as a mature estate.
Mr Low, 65, said: 'I didn't mind paying the $706,000 as the location is good but I would have gone for the BTO flats if I had known earlier.'
He has not yet exercised the option to buy his Trivelis unit. If he pulls out now, he will lose 1.25 per cent of the purchase price, or $8,900. If he had already exercised the option, the penalty would be 20 per cent of the cost of the flat.
EL Development's spokesman Lim Yew Soon said about 100 others who had booked a Trivelis unit have also not exercised their options.
Mr Lim said that, so far, two Trivelis buyers have pulled out of the deal and paid the 1.25 per cent penalty, citing the upcoming BTO launch as a reason.
The reason for the rest who have backed out - about 23 others - was linked to financial and eligibility factors.
Mr Lim is aware of the unhappiness on the ground, having received numerous e-mail from applicants. He said, however, that EL Development found out about the upcoming BTO project only in January, 'the same as everybody else'.
Dennis Wee Group spokesman Lee Sze Teck said it is rare for new flats to be launched close to DBSS units as the latter are generally in better locations such as mature estates. 'This could be a side effect of the Government's move to have more new flats in mature estates.'
At the Trivelis, three-room flats cost from $375,000 to $470,000, four-room units from $530,000 to $650,000, and five-room types from $658,000 to $770,000.While the exact prices are not out yet, analysts said the BTO flats might be up to 25 per cent cheaper.
'But, bear in mind, these are not apple- to-apple comparisons,' said PropNex chief executive Mohamed Ismail. 'A person who buys the cheaper BTO flat might still need to dip into his cash reserves to spend on renovations if the finishings are not as nice as the Trivelis'.'
He added that a Trivelis unit is a surer bet than the Clementi BTO, which will likely be oversubscribed.
Meanwhile Mr Low has not yet decided which road he will take. He hopes, however, that the developer will consider giving some 'discounts or concessions, to make the decision easier'.
darylc@sph.com.sg
