SINGAPORE (EDGEPROP) - The HDB has launched 3,879 flats for sale under the May 2021 build-to-order (BTO) sales exercise. The flats are distributed across four new HDB projects, with 1,557 flats in mature estates in Bukit Merah and Geylang, and 2,322 flats in non-mature estates in Tengah and Woodlands. (See: The complete list of million-dollar HDBs and where to find them)
The 782-unit Garden Bloom @ Tengah is bounded by Tengah Central and Tengah Garden Walk. The entire development comprises seven blocks with a mix of two-room flexi, four- and five-room flats.
There could be fewer applicants for this project because 10 BTO projects have already been launched for sale since 2018 and the number of applicants for new Tengah BTO projects has gradually fallen since November 2019, says Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie.
Macpherson Weave is bounded by Circuit Road, Circuit Link, and Paya Lebar Road. The entire development comprises seven residential blocks that range from 15 to 19 storeys. There are 1,382 units of two-room flexi, three- and four-room flats.
Telok Blangah Beacon along Telok Blangah Drive is a single 38-storey block comprising 175 units of three- and four-room flats. An integrated commercial podium on the ground floor will feature a new community plaza, supermarket, and hawker centre.
This project will be the first public housing in the area since the launch of Telok Blangah Parcview in 2013. “As this is a small BTO project at 175 units, demand is expected to be very high and could be about 10 times oversubscribed. However, the downside is the construction period of more than five years,” says Lee Sze Teck, director (research) at Huttons Asia.
The 1,382-unit Macpherson Weave will have seven residential blocks and a mix of two-room flexi, three- and four-room flats. (Picture: HDB)
Woodgrove Ascent is along Woodlands Avenue 1 and will be close to the Woodlands Regional Centre. The 1,540-unit development comprises seven residential blocks of 15 to 25 storeys, and it is set to be the tallest residential development in the area. There will be a mix of two-room flexi, and three- to five-room flats.
“The overall demand for BTO projects should remain healthy and could even be quite strong for some popular sites like Bukit Merah and Geylang. Some buyers may still choose to buy BTO flats despite the construction delays as prices of HDB resale flats and private properties have been rising,” says Sun. (See: Find HDB flats for rent or sale with our Singapore HDB directory)
Nichloas Mak, head of research & consultancy at ERA Realty, notes that even though the HDB resale price index has climbed 8.1% y-o-y in 1Q2021, and HDB resale volume has increased 28.6% y-o-y, the supply of new flats in this exercise has increased by 3.7% compared to the February 2021 BTO exercise.
He also notes a fall in the number of new five-room BTO flats. “In the recent BTO exercises, there was an absence of five-room flats in the popular BTO projects located in mature estates, such as the BTO projects in Bishan, and in the current BTO exercise in Telok Blangah and MacPherson projects,” he says.
Telok Blangah Beacon will be the tallest residential development in the vicinity and the first new HDB development in the area since 2013. (Picture: HDB)
Five-room flats are the largest units in new BTO developments and carry correspondingly high prices. “One possible reason is that the authorities do not want to attract criticism from home buyers that the BTO flats in the popular mature estate are getting too expensive,” says Mak.
Limiting the stock of five-room flats in the popular estates will make the existing stock of five-room flats in these locations rarer, allowing owners to sell them at higher prices, potentially leading to more million-dollar flats on the secondary market, says Mak.