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