BTO flats in Sengkang and Kallang/Whampoa could be more popular
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HDB has launched 3,739 flats for sale, which include 3,162 BTO units and 577 ROF units across various estates, under the latest Build-To-Order (BTO) and Re-Offer of Balance Flats (ROF) exercise for February.
The BTO flats are spread across five projects - three in the non-mature towns of Jurong West and Sengkang, and two in the mature town of Kallang/Whampoa.
“Flats in Sengkang and Kallang/Whampoa could be more popular, with the latter being more likely to be oversubscribed,” says Christine Sun, head of research & consultancy at OrangeTee & Tie.
Sun attributes the likely high demand for flats in Kallang/Whampoa to the fact that this is the first BTO sales launch in the area since November 2016. Also, they are in well-located in the city fringe and near MRT stations, she says.
The last BTO exercise at Kallang Residences in November 2016 was 12.1 times oversubscribed for the four-room HDB flats, and 3.3 times oversubscribed for the three-room flats, adds Sun.
Eugene Lim, key executive officer at ERA, foresees more second-timer demand for the Kallang/Whampoa flats, especially as their price points are higher compared to flats in non-mature locations.
For Sengkang, OrangeTee’s Sun notes that there was “healthy demand and positive price appreciation” for the flats there last year. Based on data provided by the Singapore government, four- and five-room standard resale flats in Sengkang saw 1% and 2% y-o-y price increases respectively in 2018, she says.
Among the non-mature estates, Sengkang was one of the two towns to see price hikes for both four- and five-room resale flats last year, which indicate the prices for HDB resale flats are “resilient”, says Sun.
Eligible first-timer families would be able to enjoy up to $80,000 of housing grants, comprising the Additional CPF Housing Grant of up to $40,000, and the Special CPF Housing Grant of up to $40,000.
First-timer families will enjoy priority in flat allocation, HDB said. Meanwhile, couples who wish to live together with their parents can apply for a 3Gen flat in Jurong West or Sengkang. For those who wish to live close to their parents or married children, they can submit a joint application under the Multi-Generation Priority Scheme.
Under the ROF exercise, the 577 flats comprise 173 two-room flexi units, 166 three-room units, 129 four-room units, 10 five-room units, 96 3Gen units and three executive flats. At least 95% of these will be set aside for first-timer families, and up to 5% for second-timer families. Overall, families will be given priority in the flat selection, HDB said.
The ROF exercise “may not be as popular” as only 13% of the ROF flats are completed, notes Lee Sze Teck, head of research for Huttons Asia. The ROF launch is also the smallest in number compared to previous launches - August 2017, February 2018 and August 2018 saw 1,394, 717 and 726 units released for sale, respectively, Lee points out.
Applications for new flats can be submitted online on the HDB InfoWEB from Feb 12 to 18. Users can only apply for a flat under either the BTO or ROF scheme.
For the next BTO launch in May 2019, 3,400 HDB flats will be offered in Kallang/Whampoa, Tengah and Woodlands.
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