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.

Source, Straits Times 19 January 2010

THE scramble for the Dawson HDB build-to-order (BTO) flats came to an end yesterday with some flats more than 11 times subscribed.

The two-week application window resulted in a flood of applications for five-room flats, which attracted 2,090 applications for the 176 available. There were 11.9 applications for each available unit.

But home seekers need not be discouraged by the daunting odds as the Housing Board yesterday announced that it will offer a fresh batch of BTO flats for sale next Tuesday.

Buyers can look forward to another 1,300 BTO flats in Choa Chu Kang and Hougang, the board said in a statement yesterday. ‘HDB will continue to launch more BTO projects in 2010 if there is sustained demand for new flats.’

At Dawson, 6,015 applications were received for the 1,102 available four-room flats and 806 applications for the 270 three-room flats.

Demand for studio apartments outstripped supply by a factor of 10.7, with 429 applications for just 40 units.

Buyer interest was slightly less intense for paired units under the multi-generational scheme, with 379 applications for the 65 such flats available.

First-time buyers, who formed 70 per cent of all applicants, will be given priority. Ninety-five per cent of the flats, including those offered in Bukit Panjang and Sembawang, will be set aside for them.

Systems analyst Victoria Chew, 26, who applied for a four-room paired unit in Dawson, said she will look for a resale flat while waiting for her queue position to be announced in February.

Ms May Lee, 23, who also applied for a paired flat, was similarly unfazed by the high number of applications.

‘There’s no point worrying. When another good BTO project comes along, we can always apply again,’ she said.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that the centrally located Dawson flats are likely to make good long-term investments as they can be rented out once owners have adequately satisfied HDB’s rental criteria.

Elsewhere, this month’s two other BTO projects – Segar Grove in Bukit Panjang and Montreal Dale in Sembawang – attracted widespread interest as well.

There were 1,116 applications for Segar Grove’s 196 four-room flats, while Montreal Dale’s 152 four-room flats drew 1,085 applications. The two-room flats were, on average, 52 per cent subscribed.

The final update on number of applications received will be posted on www.hdb.gov.sg at 2pm today.

Source, Straits Times 29 Decemeber 2009