SINGAPORE: Plans to
build ahead of order are continuing with seven HDB Build-To-Order (BTO)
projects on track despite the subdued response of home-buyers.
Among
seven Build-To-Order (BTO) projects launched in September, the Housing
and Development Board said three had relatively low application rates.
According
to an HDB statement on Wednesday, the Golden Peony BTO project at
Jurong West, comprising 190 Studio Apartments, had an application rate
of 0.6.
Anchorvale Harvest and Fernvale Rivergrove at Sengkang, comprising 2,445 units, had an application rate of 1.3.
Based
on past experience, the HDB said such projects are not likely to
achieve 70 per cent take-up rate at the selection exercise stage.
Nonetheless,
the HDB is going ahead to start the process of building seven BTO
projects with tenders called for five projects, and tenders for the
Fernvale Rivergrove and Waterway Woodcress set to be called by
end-October.
The move will allow flat applicants for the other
three projects to get their units early and at about the same time as
applicants for other BTO projects launched in this exercise.
All seven projects are expected to be completed between 2014 and 2015.
HDB said it will launch another 4,200 BTO flats in November and 25,000 BTO flats next year.
One property analyst said the recent availability of flats leaves homebuyers spoilt for choice.
Mr
Lim Yong Hock, senior vice president of PropNex, said: "In this short
period, many new flats have come up especially in Sengkang and Punggol.
So I believe homebuyers have a much wider range to choose from."
Another analyst said the behaviour could have been influenced by external factors.
Mr
Nicholas Mak, executive director at SLP International Property
Consultants, observed that the September exercise was carried out along
with the Sale of Balance Flats.
"The Sale of Balance Flats
consisted of about 2,847 units which is highly popular among home buyers
because they are nearer completion and some of them are in mature
estates. As a result, the Sale of Balance Flats actually drew away some
of the demand from the BTO exercise, leading to a low subscription rate
for three of the seven BTO projects," he said.
Mr Mak added that
the low subscription rate is not reflective of real demand, as other BTO
projects like the ones in Ang Mo Kio and Punggol saw a strong response.
- CNA/sf/cc
i heard a lot of complaints about lack of flats.
Hope that when the flats are completed and still poor response HDB will give good discount for "purchase" lease. I use the word lease because ultimately when the leasers finished financing the hdb flat loan the flat still belong to the govt.