HOME-buyers can look forward to an unprecedented surge in supply of new Housing Board (HDB) flats this year and next – enough to fill a town as big as Toa Payoh.

The HDB said yesterday it will offer 16,000 new flats this year, and up to 22,000 next year under its build-to-order (BTO) scheme. Taken together, the number surpasses the 35,400 flats in Toa Payoh today.

It will also release more land for tender for executive condominiums (ECs) and its design, build and sell scheme (DBSS), where private sector operators develop public housing projects.

These could yield 7,000 DBSS flats and 8,000 EC units over the next two years if demand is sustained.

In contrast, only 4,000 units have been launched for sale under the DBSS scheme since it started in 2005 and 10,000 flats for ECs in the last 10 years.

The ramp-up of supply follows Prime Minister Lee Hsien Loong’s announcement in his National Day Rally speech on Sunday that the $8,000 a month income ceiling will be slightly relaxed for the ‘sandwich group’ of home-buyers.

Those with a monthly household income of between $8,000 and $10,000 will now also be eligible to buy DBSS flats – where previously their only option apart from private property was EC units.

They will be allowed to buy the flats with a CPF Housing Grant of $30,000.

Speaking at a briefing yesterday, National Development Minister Mah Bow Tan said the increase in supply will ensure that there are enough flats for those who wish to buy. He said this would also dampen prices, although other factors such as the economy, jobs and interest rates would also play a part.

The new DBSS homes will be built in mature towns such as Yishun, Tampines, Bedok, Hougang and Jurong West, said the HDB.

The new EC homes will be spread across new and mature estates such as Sengkang, Yishun, Punggol, Pasir Ris and Bukit Panjang.

Asked if the increase in supply could create a housing supply glut in the future, Mr Mah said that supply could be adjusted to demand based on HDB’s BTO system, which builds only when a certain level of demand is reached.

He added that the measures will have an impact on the market but ‘it will not cause a great problem… but we still need to watch it’.

Mr Mah also said that the completion time for new flats will be cut from three years to 2-1/2 years for projects launched from the middle of next year onwards. This will be achieved by streamlining HDB’s internal processes and awarding the tenders for projects earlier, he said.

CBRE Research executive director Li Hiaw Ho said yesterday that first-time home-buyers ‘stand to benefit most from the measures, not only from the increase in supply providing more options, but also from an expected reduction in competition from buyers who are purchasing second and subsequent properties’.

‘The main thrust of these revised measures… reiterates the Government’s stand that HDB homes are primarily for owner-occupation and should remain so,’ he added.

Source: Straits Times, 31 Aug 2010

Lack of interest a sign that developers have become more selective

AN EXECUTIVE condominium (EC) site that experts thought might draw at least two or three developers failed to attract a single bid at the tender’s close yesterday.

The surprise lack of interest in the Jurong West site likely stems from the Government’s recent decision to put a record number of sites up for tender in coming months, giving developers a wealth of choice.

Bids were tipped to come in between $230 and $300 per sq ft per plot ratio for the 99-year leasehold site after strong interest in other EC tenders this year.

But developers have become much more selective and the site is not particularly appealing, being next to the expressway with no amenities nearby and some distance from the MRT, said experts.

ERA Asia-Pacific associate director Eugene Lim added: ‘If the site is not attractive, developers would presume that it would be difficult to sell. So why take the risk?’

A developer who declined to be named said: ‘There are too many choices out there. You have only so much resources so you have to pick something that you can make money from.’

EL Development managing director Lim Yew Soon said: ‘I would think most of us want to choose a site that is more attractive. There’s an opportunity cost even if you put in an opportunistic bid as you may miss the next tender.’

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said developers will be more cautious with sites where they see limited pricing flexibility.

ECs are aimed at households with a gross monthly income ceiling of $10,000 so developers would want to price units at below a million each, he said. They should cost at least 10 to 15 per cent less than a private mass market condo unit.

The last time an EC site had no takers was in late 2008 when the market was weakening. That site – at the junction of Punggol Field and Punggol Road and near Punggol MRT station – eventually sold in June this year.

A Ministry of National Development spokesman said: ‘It’s not possible to conclude the lack of bids is a sign of the market cooling. Developers’ participation on Government land sales sites is affected by several factors, of which location of the sites and supply of sites are some of the considerations.’

However, Mr Mak said the Jurong West outcome will have a ‘psychological effect on the land sales market’.

‘It could signal to developers that they no longer need to bid high for sites that are not attractively located,’ he said.

The Jurong EC site can yield an estimated 460 units with a maximum permissible gross floor area of 542,988 sq ft.

Meanwhile, demand for new build-to- order (BTO) HDB flats remained strong, with 2,163 applications received for 171 four-room flats in Jurong West.

Applications for the five-room flats in the same area were nearly 12 times the 104 units on offer. The project in Bukit Panjang drew 2,123 applications for 313 four-room flats.

Source: Straits Times, 13 Aug 2010

Next year’s supply may even exceed this year’s record 16,000 new flats

HOME buyers could have more than 16,000 new build-to-order (BTO) flats to choose from next year if demand continues at its present pace, said National Development Minister Mah Bow Tan.

The flats will be offered in mature HDB estates such as Tampines and Pasir Ris as well as outlying housing areas.

Mr Mah told the media yesterday: ‘If demand remains at this level, we will certainly push out a new supply of HDB flats at the same level, if not higher.’

Demand is now strong and while there are signs of an economic slowdown, the momentum should continue.

‘Going forward, I can safely say that we will continue to see this growth, and therefore we are preparing for continued supply,’ added Mr Mah, who was speaking on the sidelines of his ministry’s National Day Observance Ceremony where he presented awards to staff.

‘We are confident it will be taken up. It will be at least 16,000 new flats.’

The Government has pushed up the supply of BTO flats to 16,000 this year – about 80 per cent more than for last year and likely the highest in a decade.

The HDB had gone on an intensive building drive in the boom years of the 1990s, only to stop building new flats in new towns in 2002 as it had some 17,500 unsold flats.

The increased supply now is to meet sizzling demand, as BTO projects continue to be oversubscribed and surging HDB resale prices continue to scale new highs.

Mr Mah said late last month that the supply and demand imbalance will be arrested soon by the record number of HDB flats being released this year with prices likely to stabilise in about a year or so.

He also noted yesterday that new flats will be launched in areas other than Punggol and Sengkang, where most of the existing available land is.

‘We’re now looking for pockets of land in other parts of Singapore now that we have fulfilled our promise to Punggol,’ he added.

Mr Mah said Punggol has achieved a critical mass of 21,000 to 22,000 flats, a level that can support facilities like a new shopping mall and a town centre.

The minister also said that many young couples want to live near their parents, their children’s schools or their workplaces, so there is a demand for new flats in mature estates.

These estates will not be in downtown Singapore but could be in Tampines and Pasir Ris, he said.

He said more details will be available once the land is identified and prepared.

‘Each site is chosen very carefully… We want to build close to amenities… What HDB is doing is they are now looking for all these different pieces of land,’ he added.

‘But the direction is to start to spread out the building programme into other areas.’

The HDB will also be building flats in entirely new estates.

‘One day, we’ll have to look at opening up new land, new estates… as eventually, we will run out of available land.’

But this will require a lot of preparation and is costly as the Government will have to put in brand new infrastructure and sewerage systems, he said.

Earlier this year, Mr Mah had mentioned that the Government will consider building flats in new areas such as Simpang in the north-east, along the Strait of Johor and Tengah in the west.

He reiterated yesterday that priority will continue to be given to first-time home buyers.

Second-timers can head for the resale market, though they should not rush in if they can afford to hold off.

‘If it is not so urgent, I would advise you to hold back for a while because you already have a flat to stay in… Consider holding back till the resale market stabilises,’ Mr Mah said.

When asked about the recent tweak to the project completion period for private residential sale sites from six to five years, he said that it should not affect many developers but it does give better assurance of the supply coming onstream.

‘The longer the (completion period), the more uncertain the supply projections going forward.’

Meanwhile, five teams from the National Development Ministry received awards for their projects on work such as eating well for less by choosing frozen meat as an alternative to chilled meat, assisting HDB lessees in financial difficulty and the master plan 2008 review.

Source: Straits Times, 7 Aug 2010

They may come up in established estates; no new estates to open

THE Housing & Development Board (HDB) could roll out more than 16,000 new flats across various estates next year if demand for public housing stays firm, National Development Minister Mah Bow Tan said yesterday.

Rising resale flat prices and cash premiums have prompted HDB to launch up to 16,000 new flats under the build-to-order (BTO) scheme this year. This is probably the highest number in 10 years, Mr Mah told reporters on the sidelines of his ministry’s National Day observance ceremony yesterday.

In the seven months to end-July, HDB brought more than 9,800 new BTO flats to market. And subscription rates for launches have been high.

‘If demand continues to be strong like this, we will ramp up our building programme even further for next year,’ Mr Mah said, adding that HDB is looking for land and getting plans ready.

More flats could come up in established estates such as Tampines and Jurong, beyond the newer towns of Punggol and Sengkang. Punggol has achieved a critical mass of about 21,000 to 22,000 flats, Mr Mah said. ‘Once we have achieved that, then we are able to now move into other parts of Singapore as well.’

There is still land available for development at Punggol and Sengkang, and HDB is also looking for sites in other estates, he said. But it will not open up new estates yet.

In March, Mr Mah flagged Tengah in the west and Simpang in the north-east as potential townships.

But while the government has set aside land for new estates, building them will be costly and will require a lot of work in terms of putting in roads, sewerage systems and other infrastructure, he explained.

Demand has been strong not just for public housing but also for private homes – particularly those in the mass-market segment. Earlier this week, the government cut the project completion period (PCP) for private residential sites that it sells to five years from six years to ensure a more timely supply of homes.

Mr Mah described the change as a ‘minor tweaking’ and said that it should not affect many developers. The shorter PCP gives ‘better assurance that the supply will come on stream’, he said. ‘The longer the PCP, the more uncertain the supply projections going forward.’

In his speech at the ceremony, Mr Mah said that the government will launch the Northern Explorer Park Connector Network this year. This is the third of seven loops linking parks around the island.

Five teams from various agencies under the National Development Ministry received awards from Mr Mah yesterday for various projects, such as rolling out Singapore Green Building Week.

Source: Business Times, 7 Aug 2010

This year’s launches now top offers for whole of last year

THE Housing & Development Board (HDB) is launching two new Build-To-Order (BTO) projects with 1,016 units at Bukit Panjang and Jurong West.

This brings the number of new flats it has introduced under the scheme so far this year to 9,844 – exceeding the 9,000 for the whole of last year.

Senja Gateway, located at the junction of Kranji Expressway and Woodlands Road, will have 741 standard flats. They consist of 254 studio apartments, 313 four-roomers and 174 five-roomers.

The site is near the LRT station at Ten Mile Junction, and is surrounded by schools such as Pioneer Junior College.

A five-room flat at the estate will go for $308,000 to $398,000. According to HDB, comparable resale flats in the area cost $378,000 to $450,800.

The second project, Corporation Tiara, is at the junction of Corporation Road and Yung Kuang Road. Up for sale are 275 premium flats, comprising 171 four-roomers and 104 five-roomers.

The project will include another 190 studio apartments but HDB will put these up for sale later.

Corporation Tiara is some distance from the Lakeside and Boon Lay MRT stations. But it is near green lungs – Chinese Garden and Japanese Garden.

A five-room flat at the estate will cost $304,000 to $389,000. Prices of comparable resale flats in the vicinity range from $384,000 to $420,000.

HDB has ramped up the supply of new flats this year as prices of resale flats continue to climb – they rose 4.1 per cent in Q2 from Q1. Buyers also had to pay larger cash premiums.

The agency will be rolling out another 1,400 new flats in Yishun next month, and it plans to offer up to 16,000 BTO flats for the whole year.

HDB pointed out that the annual take-up of HDB flats ranged from 7,000 to 16,100 in the last 10 years. ‘There were balance flats almost every year,’ it added.

Source: Business Times, 30 Jul 2010

TWO build-to-order (BTO) Housing Board (HDB) projects that will add 1,016 new flats to the market were launched yesterday. The launch means 9,844 flats have been released in seven months, exceeding the 9,000 units offered for the whole of last year.

The projects are Senja Gateway in Bukit Panjang and Corporation Tiara in Jurong West.

Senja Gateway at the junction of Kranji Expressway and Woodlands Road will have 741 standard flats, comprising 254 studios, 313 four-room flats and 174 five-roomers.

Studios of 35 sq m to 45 sq m will cost $67,000 to $95,000, four-room flats of 90 sq m will be from $242,000 to $306,000 while five-roomers of 110 sq m will go from $308,000 to $398,000.

Corporation Tiara in Jurong West, at the junction of Corporation Road and Yung Kuang Road, will have 275 premium flats, comprising 171 four-roomers and 104 five-roomers.

Four-roomers of between 90 sq m and 93 sq m will cost between $242,000 and $325,000 while five-room flats of 110 sq m to 113 sq m will cost between $304,000 and $389,000.

Under the BTO scheme, flats are built only when a certain level of demand for the project is met.

PropNex chief executive Mohamed Ismail expects this launch to be more than three times oversubscribed as demand is still strong due to the high cash-over-valuations (COV) asked for in the HDB resale market.

He added that the pattern of demand from past BTO launches showed that four- and five-room flats were often the most popular.

‘I think demand will be sustained throughout this year and we might even see a record number of BTO flats being launched,’ he said.

The HDB said that if demand from first-time buyers is sustained, it is prepared to offer up to 16,000 BTO flats this year. This is a significant supply as the total annual take-up of HDB flats in the last 10 years ranged from 7,000 in 2006 to 16,100 in 2000, with flats left unsold almost every year, the board said.

Buyers can expect about 1,400 flats to be launched in Yishun next month while upcoming projects include areas like Woodlands, Punggol and Sengkang.

The BTO stock will also be supplemented by an upcoming supply of 4,700 units under the design, build and sell scheme (DBSS) and executive condominium scheme such as a site launched for tender in Tampines Avenue 5 last month.

The HDB said it is prepared to launch more DBSS sites if demand keeps up.

Applications for the BTO flats launched yesterday can be made online at www.hdb.gov.sg until Aug 11.

Source: Straits Times, 30 Jul 2010

The Housing and Development Board will launch a premium housing project in Punggol later this June under the Build-To-Order (BTO) system.

Sited along the Punggol Waterway, the project will offer waterfront living and boasts eco-friendly features.

In line with the project’s emphasis on energy conservation, there will be large courtyards and openings to promote natural ventilation and airflow to flats and common areas.

Solar panels will also be introduced to offset electrical consumption at the common areas.

The premium housing project targets a niche group of buyers who are prepared to pay more for its signature attributes – prime location, groundbreaking design with vantage views and eco-friendly features.

This was revealed by Senior Minister of State for National Development Grace Fu when she launched the Punggol, Remaking our Heartlands Exhibition at HDB Hub.

She said two other BTO projects will also be launched in Sengkang, providing choices for flat buyers with different budgets and preferences.

Source: Channel News Asia, 22 Jun 2010

FRESH evidence has emerged of Singapore’s red hot property market with the Housing Board’s (HDB) latest launches attracting six applicants for every available flat.

A staggering 5,015 bids were received for 828 new flats in Sengkang and Sembawang by the application deadline of midnight on Monday.

The high level of interest outstrips that of recent years, when about four applications were typically received for each new flat, according to housing analysts.

Demand was particularly intense for five-roomers in Sengkang, where 1,341 applied for the 126 flats on offer – more than 10 applications for each flat.

This high level of interest follows January’s launch of four-roomers at Limbang Green at Choa Chu Kang, which attracted 14 applications for every flat.

The blistering demand for the developments at Fernvale Ridge in Sengkang and Sembawang RiverLodge is being attributed to the escalating prices of resale flats, which set a fresh record in the last quarter of last year.
HDB resale flat prices have risen by some 40 per cent over the past three years. ‘Demand has shifted from the resale market directly to HDB’s new flat queue, as many first-time buyers are likely to have been priced out of the resale flat market,’ said Dennis Wee Properties director Chris Koh.

PropNex chief executive Mohamed Ismail was not surprised by the high level of demand given that new flats were priced about 30 per cent lower than resale flats.

‘Couples who do not need flats so urgently will definitely join the queue,’ he noted.

HDB launched the Sengkang and Sembawang projects under its build-to-order (BTO) scheme, which builds only when a certain demand is reached and has a typical waiting time of three years. Combined, the projects offer 266 three-room, 436 four-room and 126 five-room units.

Fernvale Ridge’s 216 four-room flats attracted 1,671 applications, while its 180 three-roomers received 491 bids.

At Sembawang RiverLodge, the 220 four-room flats pulled 1,234 applications, while the 86 three-roomers drew 278.

Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale, but set aside for lower-income families at a later date, said HDB.

Mr Ismail said he expects the demand for new flats to remain high given that resale flat prices are likely to stay robust at least in the short-term.

But Mr Koh suggested that demand for BTO projects might be less than it seems if flat applicants do not take-up flats when they are finally offered to them.

‘Some buyers who join the queue might be afraid to lose out, but are not that serious about buying,’ he said.
HDB has offered 3,653 flats this quarter, with a further 1,200 BTO units to be launched in Punggol next month.

Source, Straits Times 31 March 2010

Projects in Sengkang and Sembawang may see big demand

THE Housing and Development Board (HDB) is offering 828 flats in Sengkang and Sembawang through two new build-to-order (BTO) projects.

These are the first BTO projects to be launched after the government adjusted some public housing policies early this month.

HDB is gauging interest in the 522-unit Fernvale Ridge in Sengkang, and the 306-unit Sembawang RiverLodge. Fernvale Ridge, bounded by Sengkang West Way and Fernvale Link, will be near the Fernvale, Layar and Thanggam LRT stations. There will be 180 three-room flats, 216 four-room flats and 126 five-room flats.

The selling price for a five-roomer will range from $281,000 to $352,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $415,000 to $461,000.

The other BTO project, Sembawang RiverLodge, is at Sembawang Drive. The nearest MRT station is at Sembawang, where Sun Plaza is also located.

Of the 306 units available, 86 will be three-roomers and 220 will be four-roomers.

HDB added that the project is designed to house another 126 two-room flats, but it will set these aside ‘to meet the housing needs of lower income families at a later date’.

A four-room flat at Sembawang RiverLodge will cost $212,000 to $268,000. The price of a comparable resale four-roomer nearby is $275,000 to $350,000.

PropNex CEO Mohamed Ismail expects both BTO projects to be popular and they could each be oversubscribed by at least eight times. One reason is because the sites will have three, four, or five-room flats – not studio apartments – which are suitable for young couples starting a family, he said.

Sembawang RiverLodge could stand out, he said. This is because residents will get ‘a taste of waterfront living’ with Sungei Sembawang nearby and the estate will have amenities such as a supermarket.

Applications for the new flats will close on March 29. With these two projects, HDB would have offered 3,653 new BTO flats in the first three months of the year. It plans to release 1,200 BTO flats in Punggol next month.

First-timer households comprising a Singapore citizen and permanent resident applying for flats will have to pay a $10,000 premium on top of HDB’s selling price. The $10,000 will go back to them if the PR family member becomes a citizen, or if the couple has a child who is a citizen.

Source: Business Times, 17 Mar 2010

THE Housing Board has launched two build-to-order (BTO) projects that will deliver 828 new flats to the market.

The developments – Fernvale Ridge in Sengkang and Sembawang RiverLodge in Sembawang – comprise 266 three-room, 436 four-room and 126 five-room units.

Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale. They will be set aside for lower-income families at a later date, said the HDB yesterday.

This is the first time the HDB has set aside flats. It said that two-room flats generally received fewer applications in BTO launches but they were central in helping families in financial difficulties get suitable housing.

The low-income group was placed in the spotlight recently during this month’s Budget debate with several MPs asking whether this group had inadvertently been left out in the pursuit of growth and if substantial government support had been provided for them.

Yesterday’s launch is part of a broader HDB plan to offer at least 12,000 new flats this year. So far 3,653 flats have been offered this quarter with a further 1,200 BTO units to be launched in Punggol next month. Future launches have been earmarked for estates such as Yishun and Woodlands. Construction on BTO projects is triggered once a certain level of sales has been achieved.

Sembawang RiverLodge comprises 86 three-roomers and 220 four-roomers and will be built along Sembawang Drive. Fernvale Ridge, bounded by Sengkang West Way and Fernvale Link, will offer 180 three-room units, 216 four-roomers and 126 five-room units.

Three-roomers of 65 sq m at Sembawang RiverLodge are priced between $128,000 and $166,000 while those at Fernvale Ridge will go for between $128,000 and $171,000.

Four-room flats of 90 sq m in Sembawang RiverLodge are going for between $212,000 and $268,000 while those at Fernvale Ridge will cost $216,000 to $271,000.

Five-roomers of between 110 sq m and 113 sq m in Fernvale Ridge in Sengkang will sell for $281,000 to $352,000.

PropNex chief executive Mohamed Ismail said the developments will be huge hits as the number of units offered this time around is only about half the 1,534 units offered during last month’s BTO, even as buyer demand remains strong.

He expects both projects to be oversubscribed by at least eight times given their ‘very attractive pricing’ and close proximity to schools, a key selling point for young couples with children on the horizon.

‘Recent BTOs have offered studio apartments which do not make much sense to a young couple who are looking to start a family, as they will be locked into the BTO flat for a further five years after collecting their keys,’ he added.

The HDB said that this year’s BTO supply will be supplemented by flats under the Design, Build and Sell Scheme (DBSS) as well as executive condominiums (ECs) to cater for higher-income buyers.

Besides the two EC sites offered for sale in January, the HDB will tender out another land parcel in Yishun Avenue 11 under the DBSS for a potential yield of 700 flats by next month. Applications for the new BTO flats can be made online at www.hdb.gov.sg until March 29.

Source, Straits Times 17 March 2010