Largest roll-out of BTO and SBF flats in latest launch

[SINGAPORE] Home-buyers can choose from 8,952 Housing and Development Board (HDB) flats in the largest joint roll-out of Build-to-Order (BTO) and Sale of Balance Flats (SBF) units.

Yesterday's launch eclipsed the previous mark of 8,262 BTO and SBF flats launched in September 2011.

Of the units made available yesterday, 4,978 are BTO flats in six projects located in five non-mature estates - Bukit Batok, Hougang, Jurong West, Sembawang and Woodlands.

Christine Li, the head of research and consultancy at OrangeTee, said the demand for these BTO flats could moderate this time around because they are being released with SBF flats, which promise a generally shorter waiting period and could thus mop up some of the demand.

And as the chance of landing a BTO flat is tilted in favour of first- and second-timers, there could be a knock-on effect of dampening the resale market.

Ms Li observed that as it stands, there has already been downward pressure on cash-over-valuations (COVs). OrangeTee estimates that one in five flats in Singapore are now sold at zero COV or even negative COV.

Ong Kah Seng, the director at R'ST Research, noting the moderation in resale prices, said: "But that said, I think the BTO flats will cater to those who really want to have a more affordable option."

Eugene Lim, a key executive officer at ERA Realty, said, however, that demand from singles has not been met, so there will be continued oversubscription for two-room flats in this BTO exercise.

In Woodlands, HDB is offering 993 units of two- to five- room flats for the Admiralty Grove project between Woodlands Avenue 6 and Woodlands Drive 62. (See map for the prices at each project.)

Hougang Meadow along Upper Serangoon Road will have 732 flats, comprising studio apartments, three- room and four- room flats.

These two projects are expected to be popular, primarily because they are near MRT stations.

HDB is also launching two projects in Jurong West: Boon Lay View and Yung Kuang Court.

Boon Lay View, bounded by Jurong West Avenue 2, Corporation Road and Boon Lay Avenue, will have 810 homes. These will range from three-room to 3-Gen units.

Ms Li said the 3-Gen flats in Boon Lay could attract a fair bit of interest; it is only the second time the government has put such units on the market.

3-Gen flats were launched alongside five-room flats in Yishun at the last BTO exercise to keen interest.

At Yung Kuang Court between Corporation Road and Yung Kuang Road, there will be 528 four- and five-room flats.

The biggest project by number of units offered yesterday was West Ridges @ Bukit Batok along Bukit Batok Road, with 1,578 two- to five-room flats.

The sixth and final BTO launch yesterday was EastLawn @ Canberra, located near Sungei Simpang Kiri and Sembawang Road, with 337 four and five-room flats.

The 3,974 SBF units are spread across 24 towns or estates, including Ang Mo Kio, Bukit Merah, Central and Queenstown. Prices start at $73,000 for a studio apartment and go up to $485,000 for an executive flat. Among them are two units at The Pinnacle @ Duxton, which Mr Lim thinks will be hotly contested because of their potential for capital appreciation in the resale market.

The launches yesterday brought total BTO supply this year to 25,139 flats. Together with balance and additional two-room flats from previous exercises, HDB has released 33,568 flats for sale this year.

In January, another 3,150 BTO flats in Bukit Batok, Jurong West, Punggol, Serangoon and Woodlands will be made available.

Source: 27th November 2013 Business Times

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Largest roll-out of BTO and SBF flats in latest launch

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