Kallang Residences is among the BTO projects that have seen strong demand from second-timers.
This year’s final Build-To-Order (BTO) exercise witnessed strong demand as attractive locations help drive interest for the projects on offer—particularly from second-time home buyers, reversing the previous decline in overall subscription rate, according to media reports.
Subscription rates from second-time home buyers for four-room units at Kallang Residences stood at 53.9, while that for three-, four- and five-room units in Bedok were all above 20. Meanwhile, nearly 3,700 second-timers applied for around 590 four-room units in Bidadari, reported TODAYonline.
Property analysts attributed the robust demand from this group to the projects favourable locations. Century 21 chief executive officer Ku Swee Yong said this group, typically upgraders, has greater spending power compared to first-time buyers and does not mind spending more for a centrally-located home.
“Second-time buyers may currently be living further away from the city, and they may wish to upgrade to a flat nearer to the Central Business District,” added Caroline Koh, manager of research and consultancy at Suntec Real Estate Consultant.
National Development Minister Lawrence Wong revealed in April that this year’s ramped up supply of around 18,000 BTO flats will be gradually tapered off by his ministry to achieve a more sustainable level in the medium term.
He underscored that applications from first-time buyers had stabilised at a rate of around 1.6 over the last 12 months.
As at 5pm yesterday, the subscription rate from first-timers for three-room and larger units stood at 2.6.
With demand “largely satiated”, Ku expects next year’s BTO supply to be moderated.
Suntec’s Koh, however, expects the first exercise in February 2017 to register strong demand as around 4,100 flats will be offered by the Housing and Development Board in Woodlands, Tampines, Punggol and Clementi. “There seems to be a good selection of flats,” she said.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
