August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats

Big rooms in older estates saw the greatest applying rates. Four- and also five-room flats at Sun Plaza Spring in Tampines saw application rates of 22.3 as well as 26.3 for the 150 as well as 177 offered apartments, 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 completing 372 units received a 17.5 application rate.

While PLH units were oversubscribed, Sun says the application rate was less than in previous PLH kick off. “Probably the pool of buyers has diminished because several PLH design apartments have actually been introduced over the past year, and also some people may have already gotten a unit in the earlier BTO exercises,” she believes.

Sun connects the popularity of the projects in developed estates to the adequate amenities as well as closeness to MRT terminals. “The Tampines property also has one of the fastest end durations, around 36 months,” she adds.

The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units introduced available. This has to do with 30% greater than the approximately 27,000 applications acquired during the May BTO exercise when 4,583 units were introduced, indicates Christine Sun, higher vice head of research and analytics at OrangeTee & Tie.

Among the flats in non-mature estates introduced, the project in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi flats, 8.1 for three-room flats, as well as 11.7 for four-room apartment or condos. Meanwhile, 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.

Lentor Hills Residences showflat location

Both deals released under the prime area public housing (PLH) design– Havelock Hillside and also Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats and also 6.1 for four-room condominiums. An overall of 8,883 applications were received for the 1,651 PLH units launched.

Sun assumes the higher amount of clients might mirror much more buyers turning to the BTO market, given that BTO units are presently extra budget friendly contrasted to rising prices of resale apartments as well as personal residences. “There have not been lots of new personal home open in current months. Consequently, customers now have much less real estate alternatives, especially for cash-strapped customers,” she adds.

She includes that the 10-year minimum rent duration for PLH flats as well as extra rigid selling standards might have deterred customers. PLH condo owners are subject to a clawback aid of 6% when they offer their residences for the very first time.

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