Artist’s impression of Ang Mo Kio Court. Source: HDB
The results of the Housing Board’s latest Build-To-Order (BTO) sales exercise, which closed on Monday (30 May), show that buyers still favour flats in mature estates, reported Channel NewsAsia.
This trend was particularly evident in the mature towns of Ang Mo Kio and Bedok, where BTO flats were offered for the first time in three years.
In fact, the 234-unit Ang Mo Kio Court project reported 2,107 applications, or nine applicants per flat, as of 5pm yesterday, representing the highest overall number of would-be buyers in the latest BTO sales exercise.
The development’s 5-room and 3Gen flats also saw strong demand coming mainly from second-time buyers, with about eight applicants per flat.
According to Ku Swee Yong, Chief Executive of Century 21 Singapore, second-timers who bought a home 15 or 20 years ago have already built up a lot of equity in their current flats, making it easier for them to upgrade to a 3- to 5-room HDB flat.
As their children have grown up, moving to Ang Mo Kio is also a logical thing to do, given that there are many popular schools near the area, especially if the Bishan estate is included, he added.
Bedok North Woods was another project that was oversubscribed, with 1,580 applicants competing for 247 4-room flats.
In contrast, demand for BTO flats in non-mature towns was tepid. The highest overall subscription rate of 2.6 was witnessed by the 5-room and 3Gen flats in two developments in Bukit Panjang, Senja Ridges and Senja Valley, reported TODAYonline.
The second most popular choice were the 4-room flats in Bukit Panjang, which garnered 876 applications for the 525 units put up for sale.
SLP International’s Executive Director Nicholas Mak explained that buyers tend to prefer HDB flats in mature locations rather than non-mature towns as first-timers are likely to sell their first property for a profit after several years.
“So it’s no surprise that the ones that are better located gets higher applications,” he said.
Only five percent of the 4- and 5-room BTO flats in a mature town are allocated for second-timers, while 15 percent of the 3-room flats and larger units are set aside for this group in non-mature locations.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
