31-03-2011, 07:22 AM
Still not enough flats!
Mar 31, 2011
Hot demand for two BTO projects
Bids for Jurong West, Sengkang flats surpass analysts' expectations
By Daryl Chin
THE 1,527 flats in two build-to-order (BTO) Housing Board projects in Jurong West and Sengkang were oversubscribed by seven times when applications closed yesterday.
This surpassed analysts' expectations of four times for the units on offer, ranging from studio to five-room units. The two previous BTO offerings had a subscription rate of five and two times respectively.
Five-room flats drew the most bidding interest in both projects: 10 times the supply in Jurong West and eight times in Sengkang.
The healthy interest came even as the HDB provided details of 10 BTO projects expected to be offered in the next two months, during the launch of the Sengkang and Jurong West developments a week ago.
This was the first time the HDB had done so, to better help buyers land their dream homes. In BTO projects, flats are built after sufficient interest has been gathered from eligible buyers, of whom first-timers make up 95 per cent.
Said Mr Adam Tan, a spokesman for property firm PropNex: 'Though the new measures have helped some buyers decide which areas they should wait for, people will always flock to the popular areas like Sengkang and Punggol.'
One reason for the popularity of Boon Lay Fields in Jurong West, he added, is that home buyers might see more value for money there.
He said BTO flats are typically 12 per cent to 22 per cent cheaper than resale flats in the same area. But, in the case of Boon Lay Fields, the percentage hovered between 18 per cent and 33 per cent.
Its three-, four- and five-room flats are sold under a standard contract, which means minimum fittings, for about $183,000, $295,000 and $370,000 respectively.
On the resale market, Mr Tan said such units would fetch about $276,000, $368,750 and $451,200.
SLP International's head of research, Mr Nicholas Mak, noted that besides attractive prices, location also played an important role. 'The Sengkang one is just 250m from Buangkok MRT station, and the discount given is attractive too,' he said.
A five-room unit in the Sengkang project costs between $375,000 and $444,000. A five-room resale unit in Anchorvale Drive fetched $500,000 recently.
He said Jurong has been developing rapidly with new government initiatives. Recently, Jurong Lake was one of three areas selected for a makeover under an HDB programme which will cost $1 billion.
The latest bidding results have made some first-timers eyeing future BTO launches reconsider their strategy.
Accountant Roland Ang, 31, who intends to apply for a Punggol project in May, said: 'Even though I know that one will be popular, I can hope only that the situation improves by then. Otherwise, I might aim for a less attractive one to improve my chances in future.'
darylc@sph.com.sg
Mar 31, 2011
Hot demand for two BTO projects
Bids for Jurong West, Sengkang flats surpass analysts' expectations
By Daryl Chin
THE 1,527 flats in two build-to-order (BTO) Housing Board projects in Jurong West and Sengkang were oversubscribed by seven times when applications closed yesterday.
This surpassed analysts' expectations of four times for the units on offer, ranging from studio to five-room units. The two previous BTO offerings had a subscription rate of five and two times respectively.
Five-room flats drew the most bidding interest in both projects: 10 times the supply in Jurong West and eight times in Sengkang.
The healthy interest came even as the HDB provided details of 10 BTO projects expected to be offered in the next two months, during the launch of the Sengkang and Jurong West developments a week ago.
This was the first time the HDB had done so, to better help buyers land their dream homes. In BTO projects, flats are built after sufficient interest has been gathered from eligible buyers, of whom first-timers make up 95 per cent.
Said Mr Adam Tan, a spokesman for property firm PropNex: 'Though the new measures have helped some buyers decide which areas they should wait for, people will always flock to the popular areas like Sengkang and Punggol.'
One reason for the popularity of Boon Lay Fields in Jurong West, he added, is that home buyers might see more value for money there.
He said BTO flats are typically 12 per cent to 22 per cent cheaper than resale flats in the same area. But, in the case of Boon Lay Fields, the percentage hovered between 18 per cent and 33 per cent.
Its three-, four- and five-room flats are sold under a standard contract, which means minimum fittings, for about $183,000, $295,000 and $370,000 respectively.
On the resale market, Mr Tan said such units would fetch about $276,000, $368,750 and $451,200.
SLP International's head of research, Mr Nicholas Mak, noted that besides attractive prices, location also played an important role. 'The Sengkang one is just 250m from Buangkok MRT station, and the discount given is attractive too,' he said.
A five-room unit in the Sengkang project costs between $375,000 and $444,000. A five-room resale unit in Anchorvale Drive fetched $500,000 recently.
He said Jurong has been developing rapidly with new government initiatives. Recently, Jurong Lake was one of three areas selected for a makeover under an HDB programme which will cost $1 billion.
The latest bidding results have made some first-timers eyeing future BTO launches reconsider their strategy.
Accountant Roland Ang, 31, who intends to apply for a Punggol project in May, said: 'Even though I know that one will be popular, I can hope only that the situation improves by then. Otherwise, I might aim for a less attractive one to improve my chances in future.'
darylc@sph.com.sg