8,000 apply for 1,322 BTO flats

[Musicwhiz]

So how can property prices NOT rise?

Nov 10, 2010
8,000 apply for 1,322 BTO flats
Five-room flats oversubscribed by 12 times in Sengkang
By Daryl Chin

DEMAND for the latest batch of new Housing Board flats is high, with the offering oversubscribed by six times.

Nearly 8,000 people applied for the 1,322 build-to-order (BTO) units in Sengkang and Bukit Panjang, before applications closed at midnight on Monday.

By contrast, oversubscription rates for the two previous projects in Yishun in September and Woodlands last month were more modest, at 2.4 and 2.2 respectively.

The oversubscription rate for the latest project, while high, was not as high as some of the earlier BTO projects such as the ones in Punggol and Boon Lay in May, which was more than six times the number of units available.

Bigger flats proved the most popular this time around. Five-room premium flats at Anchorvale Horizon in Sengkang were oversubscribed by 12 times, with 1,838 applications for 148 units.

The 710 four-room flats at Anchorvale Horizon and the other development, Senja Parc View in Bukit Panjang, were oversubscribed by about five times. The 112 two-room flats in Senja Parc View were the least popular, with 89 applications.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the response shows buyers are increasingly looking for value for money.

Location is another important factor. 'The previous BTOs with lower demand might not be in the area where people want to relocate to,' he said.

ERA Asia Pacific associate director Eugene Lim said the demand for the Sengkang flats, which are within walking distance from the town centre and the MRT, is a sign buyers are becoming more discerning.

This is because since the end of last year, HDB has been saying in advance the number of flats it plans to build, and in which areas.

Some people are also prepared to wait for the flats they want because now they have more options, he added. HDB announced 16,000 new BTO flats this year, with 22,000 expected next year.

Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the lower subscription rates for the earlier projects in Yishun and Woodlands could be down to uncertainty in the market after new rules were introduced on Aug 30.

These include prohibiting private property owners from buying HDB resale flats, a move that eased the red-hot demand for such flats and possibly enticed more first-time HDB flat buyers into the resale market.

'In addition, the public perception of Punggol and Sengkang seems to be changing, attracting more young professionals,' he added.

The high subscription rates at good locations mean first-time buyers holding out for such popular flats could be in for a long wait.

First-timer Mark Khoo, 26, began applying for flats at the start of this year.

The marketing executive said: 'We originally wanted only those popular ones but after getting rejected four times, we decided to try for Yishun Riverwalk, a location less subscribed, so we're hoping for the best.'

He added that a number of his friends also face the same predicament.

'We might sacrifice convenience, but at least we will get a place,' he added.

darylc@sph.com.sg

[yeokiwi]

There are also lots of 2nd timers that are putting in their lottery tickets.
I think the number of applicants should be broken down to first timers and 2nd timers.

It is a cheap way to switch from a 10 years old flat to a brand new flat.

[kazukirai]

There are also lots of 2nd timers that are putting in their lottery tickets.
I think the number of applicants should be broken down to first timers and 2nd timers.

It is a cheap way to switch from a 10 years old flat to a brand new flat.

I really hope that it's much more 2nd timers than 1st timers. I applied for the 5 Rms at Anchorvale Horizon...12x over-subscribed...Not quite as tough as buying 4D or Toto but still...