Close to 500 applications have been received for the public flats to be built at Dew Spring@Yishun.
The Housing and Development Board (HDB) launched the 864-unit project on Thursday.
Four-room flats were the most popular among home buyers. There were 393 applications for 504 units, while three-room flats had 81 applications so far.
One home buyer said: “The design of the flat is very much like that of condo design, so in terms of pricing, I think it is quite reasonable.”
Two-room units were the least popular, with 13 applications received for 144 units.
Dew Spring has the largest proportion of smaller flats in a build-to-order project ever.
HDB is anticipating an increase in demand for smaller flats, as home owners downsize to ride out the economic storm.
Those looking to downgrade and buy a smaller flat from HDB will have to pay a resale levy of between S$15,000 and S$50,000 depending on their current flat type.
In some cases, the levy would wipe out any gains they have made in the sale. In light of the current financial crisis, many hope that HDB will reconsider this policy.
One home buyer said: “With the resale levy, I could end up paying more. The economy is not good right now and I want to save. But in the end, I do not know whether I am paying more, or saving, if I downgrade.”
HDB plans to release another 4,000 units of smaller flats over the next two years.
David Poh, senior district director, Propnex Realty, said: “For these two years, I think HDB prices have been rising quite rapidly. In 2007, we have about 16 per cent price index rise for the whole year.
“For the first three quarters of this year, we already experienced about 12.4 per cent. By the end of this year, it is plus minus 16 per cent. So for the whole of these two years, HDB prices have risen about 30-over per cent.
“I think with the introduction of Dew Spring@Yishun, with new supply coming on to the market, it will stabilise prices in the HDB resale market so that houses in the HDB market will remain affordable.”
The application deadline for Dew Spring is December 31.
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