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by OrangeTee & Tie Pte Ltd.

OrangeTee's comments - Debut of flats under new flat classification model (October 2024 BTO launch)

BTO Launches

Overview

Debut of Plus flats

The BTO launch holds significance as it marks the debut of a new classification flat model, encompassing Prime, Plus, and Standard flats. Introducing the initial batch of Plus flats is expected to garner significant buyer interest and market attention. Many prospective buyers will likely monitor the market reception of Plus flats as they are subjected to extended Minimum Occupation Periods (MOP) and more stringent selling criteria despite being situated away from the city centre. The government has imposed a longer MOP and more rules to discourage Singaporeans from using their flats for speculative investment. Despite the new rulings, we anticipate healthy demand for most of these flats as they are well located. Most are near an MRT station, transportation nodes, and various amenities. 

Debut of the first batch of prime and plus flats for singles

Furthermore, this will be the first batch of prime and plus flats open for application by single individuals. Previously, their eligibility was limited to new flats in non-mature estates. The opportunity for singles to purchase a unit in the city fringes and prime locations, especially in downtown areas, is a positive move as this may reduce commuting time for some individuals working in the CBD. Successful applicants will no longer need to rent or incur the high cost of purchasing a private property to live nearer to town.

Given the ageing demographic profile of Singapore, many elderly singles may need family support. Therefore, providing more housing options can help foster greater community support for our elderly singles and for the singles to look after their elderly parents, thus creating a more diversified population composition across the island.

We anticipate keen interest from singles, especially those with limited financial means, as they can now buy flats at a much lower price compared to resale flats or private housing.  

Good strategy to have shorter completion time for Standard Flats

It is good that the government continues offering flats with Short Wait Times to assist young couples in managing their family planning effectively. Many young couples still need interim accommodation while waiting for the completion of their BTO flats. For those who opt to rent while waiting, the longer the wait, the higher the incurred costs, especially considering that rental prices in the HDB market have not decreased.

Reducing the waiting time for housing units can significantly contribute to achieving our population or demographic targets. Some couples may postpone their weddings, potentially impacting Singapore's population and birth rates if a significant number of individuals delay marriage or childbirth. Those who live long-term with parents or relatives while waiting for the completion of their flats may face certain challenges, especially if they desire privacy or if the homes are not spacious enough to accommodate an expanding family, especially if the children are born. Hence, by providing more flats with shorter waiting times, some couples may not have to wait too long before having their own space, and this may result in some families being formed earlier.

Better chance of success 

Another strategic intent may be aimed at having a more equitable distribution of applicant interest and averting a concentration of applicants on the prime and plus flats. With shorter wait times, some applicants may be drawn to standard flats. This way, more buyers will have a higher chance of success in their ballot.

Moreover, buyers purchasing standard flats with Short Wait Time can enjoy both an earlier flat allocation and reduced MOP period. As such, they can sell their flats and upgrade to another home earlier. For example, they may sell their flats approximately seven to eight years from application (2 years construction and 5 years MOP), in contrast to the 15 to 17-year wait for Plus and Prime Flats (5 year construction and 10 year MOP).


Project analysis

Prime Flats 

1.  Crawford Heights (Kallang/Whampoa (White Plans)) The project will offer the new open-concept layout, commonly known as white flats, which may be particularly attractive to young couples seeking greater flexibility in customizing their living space. Demand could be strong as only 312 flats are available for application. The white plan will be useful for the smaller 3-room flats as prospective buyers looking for budget-friendly options will have the flexibility to create a study area, entertainment space or designate a small room for additional family members. Situated close to Lavender MRT Station and the North Bridge Road Market, the location offers exceptional convenience for residents. From the last BTO launch at Tanjong Rhu, the take-up rate is very strong, with almost 4,000 applicants vying for about 1,300 units, with an application rate of 3.1. Therefore, it is possible that this project will be in high demand as well. 



Plus Flats 

2.  Towner Breeze (Kallang/Whampoa) - This site will be popular as this is only the Kallang/Whampoa project with the 2-room flexi flats, and this BTO exercise marks the first time that singles can ballot for a Prime or Plus flat. Many buyers, especially singles, will be attracted to this site, especially if they are working in the downtown area. The site is within 10 to 15-minute walking distance of Boon Keng Station. The 4-room flats could appeal to families with children as Hong Wen School is beside it. Residents can also jog along the Sungei Whampoa waterway that connects to Kallang River. 

3.  Kallang View (Kallang/Whampoa) – The application rate could be quite high owing to the low base as only 271 units are being offered. The project offers excellent connectivity via the Kallang-Paya Lebar Expressway and Pan Island Expressway and is within walking distance of the Geylang Bahru MRT station and other amenities. One drawback is the funeral parlour just opposite the project. 


4. & 5. Bayshore Vista (Bedok)/ Bayshore Palms (Bedok)

We expect all three projects in Bedok to be oversubscribed due to their popularity in previous launches in Bedok. The most recent BTO projects in Bedok were in February 2024 when all flat types in Bedok North Springs and Bedok South Bloom were oversubscribed, with five-room flats from Bedok North Springs being the most popular in terms of application rate.




The Bayshore projects are anticipated to garner high interest due to the proximity to Bayshore MRT station and the East Coast Parkway. Some flats command unobstructed sea views. Both projects feature 2-room flexi flats, which will likely appeal to a demographic of singles seeking the allure of residing in the east by the sea. Furthermore, families may find the 4-room flats offered by both projects particularly appealing, especially given nearby schools like Temasek Primary and Secondary School, and Tao Nan School and Victoria JC within the same precinct.


6. Kembangan Wave (Kembangan) This project is located adjacent to Kembangan MRT station and within walking distance of Kembangan Plaza. Competition is expected to be high as there are only 230 4-room flats. The 2-room flexi flats will also be popular among singles, especially those who work in the east like Changi Business District. A significant number of amenities will be developed here as well, making the flats here more convenient for residents.


7. Central Trio @ AMK (Ang Mo Kio) The project is near the Ang Mo Kio MRT Station and two shopping malls. It will offer 422 flats, comprising 2-room flexi and 4-room units. Ang Mo Kio is a traditionally sought-after estate with comprehensive amenities. The vicinity boasts several educational institutions catering to primary, secondary, and tertiary levels, making it an attractive development for families with school-going children. The area being in easy access to the Orchard shopping belt via the MRT line may appeal to singles. 

8. Merpati Alcove (Geylang) – This project will likely generate strong demand, given the low number of 4-room flats and the only project offering Community Care Apartments in this BTO exercise, which may appeal to elderly applicants. The project is also within walking distance to Mattar MRT Station and close to two expressways, as well as the Circuit Road Market and Food Centre. As the project has Community Care Apartments available, families who wish to stay with their elderly parents in the same project may find this project appealing, although competition may be stiff due to the low number of 4-room flats available for application.


Standard Flats

Fernvale Sails and Fernvale Oasis (Sengkang) – Two projects are not within walking distance of an MRT station and further from the city centre and other major amenities like shopping malls, etc, however interest may still be strong as these projects come with shorter waiting times. Moreover, there has not been a BTO launch in Sengkang since Fernvale Vines was launched in 2019. Punggol Digital District is also taking shape, which will help draw applicants who work and want to live in the same north eastern region.    

9.   Fernvale Sails (Fernvale Link) – The project will offer 545 flats, ranging a good mix of flats from 2-room flexi to 5-room flats. It is situated near Layar LRT Station, and a variety of amenities comprising of senior-friendly facilities like an active ageing centre will be built within the development, making it an ideal location for households with elderly members. It is also within walking distance of The Seletar Mall and offers some water views. 

 

10.  Fernvale Oasis (Tampines Expressway) – The project will offer 851 flats consisting of 2-room flexi, 4-room and 5-room flats. It is within walking distance of two LRT Stations (Thanggam LRT and Kupang LRT) and will provide good connectivity for residents. 


11. West BrickVille@Bukit Batok (Bukit Batok) – The project offers 689 flats ranging from 2-room flexi to 3Gen flats that appeal to many household types. There are two (one existing and one future) primary schools within its 1km radius and a preschool is also expected to be built within the development. Although the project is within walking distance of a new Jurong Regional Line MRT station, and the flats will be completed within a short time, the MRT station is slated to be completed only in 2028. 

12. Taman Jurong Skyline (Jurong West)– This is the largest project large with 1,844 units, offering a wide range of flat types to appeal to different households. While the project is not near an MRT station with limited amenities in the vicinity, many flats will enjoy picturesque views of the Jurong Lake Gardens. Moreover, 78 3Gen flats are offered to appeal to families with elderly as the Health and Medical Care centre will be built on the adjacent site, and the elderly can enjoy evening walks by the Jurong Lake Gardens. More amenities will be built within this BTO development, which will support the residents staying here in the future. Given the large number of flats available and many other choicer flats offered at other sites, applicants may have a higher chance of success should they ballot for this project.

13. & 14. Costa Riviera I & II (Pasir Ris) 767 flats will be offered from the two Pasir Ris projects that are situated side by side. Both projects are strategically situated within close proximity to Pasir Ris MRT station and surrounded by a wide array of amenities, including a bus interchange, shopping centers, primary schools, and a hawker center in the vicinity. These projects may appeal to families who love sports and water activities in the Pasir Ris area. Furthermore, residences situated on higher floors may be able to enjoy captivating views ofthe sea and lush green surroundings.

15. Marsiling Ridge (Woodlands)  The project is in close proximity to Marsiling MRT Station, Marsiling Primary School and Marsiling Mall. The site is conveniently located near Woodlands Checkpoint, making it appealing for residents who frequently travel to Johor Bahru or have family there. Moreover, the upcoming RTS Link is expected to significantly improve travel convenience for Singaporeans, thereby increasing the property's attractiveness. In future, should the flats be leased out, Malaysians who may wish to send their children to study in Singapore will find it convenient for the family to travel back to Malaysia via the RTS over the weekends.  The most recent BTO projects in Woodlands were launched in June, which featured 1,609 flats in Marsiling Peak I and II, and they were oversubscribed.




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