Source : Straits Times – 19 Jan 2010
BUYERS have rushed to the HDB’s first build-to-order (BTO) projects launched this year, with one category of flats attracting 14 times more applications than homes available.
The intense interest in the developments at Choa Chu Kang and Hougang mirrors the flood of applications for two similar BTO projects at Dawson in Queenstown just before the new year.
The new estates – both in well-established areas – had attracted a total of 6,848 applications for 1,291 units ranging from studios to four-room units by 5pm yesterday.
Mr Eugene Lim, associate director of ERA Asia-Pacific, told The Straits Times: ‘For a long time, HDB programmes have been in areas like Punggol and Sengkang. It is now offering more choices for people. It is a welcome move as far as buyers are concerned.’
Limbang Green estate at Choa Chu Kang was the star attraction when applications opened on Jan 5.
Its 188 four-room flats have pulled in 2,681 applications – a take-up rate of about 14 times – while the 128 three-room units had reaped 402 bidders.
Things were a little less intense at Buangkok Vale in Hougang, but home seekers were still out in force with 2,608 hopefuls chasing 458 four-room units.
The estate also attracted 480 applicants keen to buy from a pool of 113 three-room apartments.
Studios had their fans as well, with 521 applications for the 276 units offered in Limbang Green, although two-room flats, while over-subscribed, received a relatively modest response.
Choa Chu Kang prices range from $64,000 for a studio unit to $278,000 for a four-room flat, while Hougang’s two-room units start at $88,000 to about $288,000 for a four-room apartment.
The final tally of applications will be posted on the HDB website at 2pm today.
Mr Lim pointed out that both projects are in areas with good infrastructure and older estates, but price is also a factor.
BTO flats – only built once a certain sales level has been achieved – are becoming more attractive given the rising prices of resale HDB units.
‘Using the Choa Chu Kang flats as a guide, selling price is $100,000 cheaper than what you can get from the resale market,’ Mr Lim said.
The new launches are likely to be the first of many, with the HDB stating earlier this month that it will offer 12,000 new BTO flats this year if demand stays robust.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the Government might have to provide more large- sized flats to meet demand.
He said: ‘The HDB might have to run this kind of exercise every month and after every quarter or so to see if the 12,000 figure is enough for this year.’
Supply can reduce when over-subscription falls, he said.
While thousands of buyers were making a beeline for BTO flats, some tried a different tack after finding the overwhelming number of applicants daunting.
Marketing representative Wan’er Chong, 26, and her partner opted for a Bishan apartment in the HDB’s design, build and sell scheme instead.
‘We were allowed to choose our unit, and there was no balloting. It was possible to buy the flat on the same day, no wait required,’ she said.
Another advantage was that the flat would come fully furnished, eliminating renovation costs, she added.
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