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HDB BTO Aug 2022 Bukit Merah Review: PLH Model Flats in Highly Central Location
Note: The August 2022 BTO applications are now closed. For more information on the upcoming November 2022 BTO launches, read our in-depth review. Alternatively, find out more about the upcoming HDB SBF (Sale of Balance Flats) exercise in November.
All eyes are on the August 2022 HDB BTO launches in Bukit Merah. Not only are they in a highly desirable city fringe location, but also have excellent connectivity. However, these perks come at a price – the two projects, Alexandra Vale and Havelock Hillside, fall under the Prime Location Public Housing (PLH) model.
Falling under the PLH Model may hamper the flats’ investment potential through rules such as a longer Minimum Occupation Period (MOP) of 10 years and a subsidy clawback. Owners are also not allowed to rent out the entire unit even after the MOP expires.
As seen in the May 2022 BTO exercise, less demand was observed for the two PLH launches. So we’re wondering: is it still worth it to apply for the Aug 2022 Bukit Merah HDB BTO flats? Let’s find out more about the projects.
HDB BTO August 2022 Bukit Merah BTO Map
Want to live in Bukit Merah without having to wait for an HDB BTO 2022 flat to be built? Check out the latest Bukit Merah resale flat listings on PropertyGuru.
Bukit Merah HDB BTO Location (HDB BTO August 2022 Launch)
HDB BTO August 2022 Bukit Merah launch | Alexandra Vale and Havelock Hillside |
Address | Alexandra View / Havelock Road |
Nearest MRT | Redhill (East West Line) and Tiong Bahru (East West Line) |
Nearest bus interchange | Bukit Merah Bus Interchange |
Nearest schools | Crescent Girls’ School, Gan Eng Seng Primary School, Bukit Merah Secondary School, Alexandra Primary School, Gan Eng Seng Secondary School, Zhangde Primary School |
Other nearby amenities | Redhill Market, Delta Swimming Complex, Delta Sports Hall, Kim Seng Community Centre, Tiong Bahru Plaza, Tiong Bahru Market & Food Centre |
There will be two Aug 2022 HDB BTO launches in Bukit Merah. The first upcoming BTO August 2022 launch, Alexandra Vale, will consist of about 782 flats located at Alexandra View, approximately four minutes’ walk from Redhill MRT station.
The second upcoming Bukit Merah August 2022 HDB BTO project, Havelock Hillside, will consist of about 869 flats located on Havelock Road, about nine minutes’ walk from Tiong Bahru MRT station as well as the upcoming Havelock MRT station on the Thomson-East Coast Line, giving it excellent connectivity.
Both upcoming Bukit Merah Aug 2022 HDB BTO launch sites are in highly convenient locations and have a good mix of amenities within walking distance. Both are a very quick MRT ride away from the CBD, making them extremely convenient for those who work there.
The Alexandra View HDB BTO 2022 site is within walking distance of amenities such as Redhill Market, Delta Swimming Complex and Delta Sports Hall. The Havelock Road BTO Aug 2022 site will be nine minutes’ walk from Tiong Bahru Plaza and near other popular amenities like Tiong Bahru Market and the hip lifestyle area.
There are also numerous schools in the area such as Crescent Girls’ School and Gan Eng Seng Secondary School.
Bukit Merah HDB BTO Price (HDB BTO August 2022 Launch)
Unit type | Bukit Merah BTO Price (HDB BTO August 2022) | Previous Bukit Merah BTO Price (HDB BTO May 2022) | Median resale flat prices in the area (Q2 2022) |
3-room | From $370,000 | From $377,000 | $370,400 |
4-room | From $531,000 | From $540,000 | $751,000 |
Due to their highly central location, the HDB BTO Aug 2022 Bukit Merah flats are priced at a premium. However, the flats fall under the PLH model, which means that buyers may receive additional subsidies to defray the costs (must be paid back upon the sale of the property).
It must be noted, however, that the PLH model is likely to also depress capital gains, making the HDB BTO August 2022 Bukit Merah launch more suitable for those who are looking to live in the flats long-term, rather than try to turn them into an investment.
The two HDB BTO 2022 launches in Bukit Merah consist only of 3-room and 4-room flats, making them more suitable for smaller households. Larger or multi-generational families might need to look elsewhere.
According to HDB’s resale statistics for Q2 2022, the median resale price for 3-room and 4-room flats in Bukit Merah was $370,400 and $751,000 respectively. Do note, however, that median resale prices seem lower than expected due to a large number of older resale flats in Bukit Merah.
Newer resale flats in Bukit Merah fetch much higher prices. However, it remains to be seen how the PLH model will affect the resale prices of the affected flats.
Budgeting for Your Bukit Merah August 2022 BTO Home Loan
The HDB BTO August 2022 Bukit Merah flats are priced at a premium due to their highly desirable location. Budgeting is thus the key to ensuring that you can afford your new home.
HDB BTO August 2022 unit type | Price | If you take an HDB loan (at 2.6%, 85% LTV) | If you take a bank loan (at 2.3% p.a., 75% LTV) |
3-room | $370,000 | $55,500 downpayment, estimated $1,427 monthly mortgage repayments | $92,500 downpayment, estimated $1,217 monthly mortgage repayments |
4-room | $531,000 | $79,650 downpayment, estimated $2,048 monthly mortgage repayments | $132,750 downpayment, estimated $1,747 monthly mortgage repayments |
We have used the starting prices of the Bukit Merah HDB BTO launches above. However, be aware that the actual price you must pay will depend on the indicative pricing for the August 2022 Bukit Merah launch, as well as the specific unit you are allocated. All prices used in the above examples do not take into account CPF housing grants.
For the purposes of this illustration, we’ve assumed an interest rate of 2.6% and an LTV of 85% for the HDB loan. For the bank loan, we’ve used 75% LTV and an interest rate of 2.3%, which is the lowest applicable rate on PropertyGuru Finance at the time of writing.
All examples are for a loan tenure of 25 years. However, if you are prepared to pay higher monthly instalments, you can potentially opt for a shorter loan tenure in order to repay your loan earlier.
For a better idea of how much you’ll be paying, check out our affordability calculator and enter the exact details of your loan. If you require personalised assistance with financing and home loans, don’t hesitate to speak to one of our PropertyGuru Finance mortgage experts.
Bukit Merah BTO Amenities (HDB BTO August 2022 Launch)
Highly Central Location
The Bukit Merah BTO Aug 2022 sites are in highly attractive locations on the city fringe, in a sought-after mature estate. Both sites are a speedy MRT ride or drive away from the CBD as well as other downtown locations like Orchard, Marina Bay and Robertson Quay.
Excellent Connectivity
The Havelock Road Bukit Merah HDB BTO August 2022 site is located within walking distance of two MRT stations, Tiong Bahru MRT station on the East West Line and the upcoming Havelock MRT station on the Thomson-East Coast Line.
Meanwhile, the Alexandra View Bukit Merah HDB BTO Aug 2022 site is only a 4-minute walk from Redhill MRT station on the East West Line.
Attractive Mature Estate with Popular Amenities
The Redhill estate is a highly established one filled with popular long-standing amenities and eateries including Redhill Market, Tiong Bahru Market, Tiong Bahru Plaza and the many cafes and lifestyle businesses in the area around Yong Siak Street.
Conclusion: Is the August 2022 Bukit Merah HDB BTO Worth Ballotting for?
There is no doubt that the August 2022 Bukit Merah HDB BTO flats are highly desirable. But the high price tag and the fact that they fall under the PLH Model may deter some buyers.
In addition, as only 3-room and 4-room flats are available in this launch, it is not suitable for large households.
Pros of the August 2022 Bukit Merah HDB BTO
Highly central location
Quick commute to CBD
Walking distance to one or two MRT stations
Mature estate with attractive amenities
Lots of schools in the area
Cons of the Bukit Merah August 2022 HDB BTO
Expensive
Falls under PLH Model
Only 3-room and 4-room flats are available
Not sure if you should ballot for the HDB BTO Aug 2022 Bukit Merah flats? Read about the other BTO 2022 launches in August 2022 below:
HDB BTO Aug 2022 Ang Mo Kio Review: Mature Estate Launch Suitable For Large Families
HDB BTO Aug 2022 Choa Chu Kang Review: Affordable, Larger Homes Close to Green Spaces
HDB BTO Aug 2022 Jurong East Review: 5 Minute Walk from Upcoming JRL Stations
HDB BTO Aug 2022 Tampines Review: 10 Minutes Away from Tampines and Tampines East MRT Stations
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This article was written by Joanne Poh. A former real estate lawyer, she writes about property and personal finance and spends her free time compulsively learning languages and roller skating in carparks.
