SINGAPORE: Analysts said flats sold under the
Design, Build and Sell Scheme (DBSS) may be losing their relevance,
as the gap in the housing market they previously served is now
covered by Build-To-Order (BTO) flats.
The income ceiling to qualify for a BTO flat was
recently raised to S$10,000 - the same as DBSS
flats.
Since the public outcry over the record-breaking
asking prices of a previous DBSS launch, Centrale 8, and the
following clamp-down on land sales for such projects, some analysts
believe the days of DBSS projects are numbered.
But in the housing market, it's all about location and
pricing.
Belvia in Bedok is the latest DBSS project to be launched.
It saw a healthy crowd, receiving more than 200 applications on its
first day.
Raymond Chia, CEO of CEL Development, said: "Bedok Reservoir is a
mature estate; we feel there's a ready demand. If you look at
houses around here, they are mainly 20 to 30 years old. People
who've grown up in the area, they are familiar with the
surroundings and amenities. Out of convenience and to be near their
parents, this can be a choice to them."
And instead of being a negative impact, Mr Chia sees the outcry
over Centrale 8 as a "talking point".
Developer Sim Lian's Centrale 8 made the news in June when its
highest asking price for a DBSS flat was S$880,000 - almost as
expensive as Executive Condominiums, which boast amenities such as
swimming pools and tennis courts.
Sim Lim eventually backed down and slashed $100,000 off its
priciest units.
The 488-unit Belvia project has 3-room to 5-room units, and an
indicative price of $570 per square foot.
"Transport is quite convenient, and a new MRT is coming up. And
it's near to the PIE and if you want to go somewhere it's very
convenient," said one Singapore resident.
"I grew up in the East, and my parents are just staying nearby. I
think the location is tied with the price. So I believe with the
new MRT to be built, I think the price to pay is justifiable," said
another.
Market watchers point out that DBSS projects are public housing and
have to be priced accordingly.
Mohd Ismail, CEO of PropNex, said: "DBSS price should be at least
20 per cent cheaper than executive condos, or slightly more; it
could be about 25 per cent, that would be ideal.
"It would make very little sense for someone to pay a high price
where the differentiation between executive condos and (DBSS flats)
is not even 20 per cent. Then I think you're not entering into a
good deal."
Two other DBSS projects will be launched later this month in
Clementi and Jurong.
- CNA /ls