Applicants less likely to get BTO flats in mature towns: Wong

Artist’s impression of the Bedok North Woods BTO project. Source: HDB Following the start of the Housing Board’s May 2016 sales exercise, National Development Minister Lawrence Wong reminded potential buyers that it’s not easy to purchase Build-To-Order (BTO) flats in mature estates.
On Tuesday (24 May), the HDB launched 3,770 BTO flats, of which 950 units are located in the mature towns of Ang Mo Kio and Bedok, while the rest are in Bukit Panjang and Sembawang.
“I know many buyers have been looking forward to this launch, as it has been more than three years since HDB last offered BTO flats in Ang Mo Kio, Bedok, and Bukit Panjang,” Wong wrote in a blog post.
As the BTO flats in mature estates were well-subscribed in the two previous BTO launches, the HDB is offering more of these units in mature estates, such as Ang Mo Kio and Bedok.
“But given their popularity, application rates for these mature estate flats are expected to be high, which means a lower chance of success. So applicants have to be prepared for this,” he noted.
Wong also encouraged young couples to apply for one of the 2,800 flats located in non-mature estates, as they are generally more affordable and come with higher grant amounts.
“For example, a 3-room flat starts from $147,000 before grants, or $77,000 after grants. By opting for a 3-room flat in Sembawang instead of one in a mature estate like Bedok, you get to save more than $100,000 instantly. You will also enjoy a much higher chance of success in your application,” said Wong.
He added that while there is a general notion that HDB flats in non-mature estates are not as well served by transport networks or other amenities and facilities, the government plans to eventually develop these areas into mature towns.
“There are significant development plans in many of these areas, which potential home buyers should take into consideration. Also, our efforts to decentralise our urban development and build commercial centres outside the city will create more investments and jobs closer to homes in these areas.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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