First-day sale of two BTO projects show high demand

Last Friday, two Singapore housing projects under the Build-To-Order (BTO) scheme had been launched. It offered 1,200 units in Jurong West and Sengkang.

The Housing and Development Board (HDB) had around 501 applications for the offered flats during the first day of sale.

It is not surprising that home buyers got attracted to the 495 available units in Sengkang’s Fernvale Palms due to its proximity to two LRT stations.

“By the time the flat is ready (in three or four years), the place should be more or less established. At the same time, it allows me and my future wife (time) to save up after our marriage,” said one interested buyer.

"I think it's cheaper than the resale flats because you don't have to pay the COV. And resale flats tend to be (more expensive) because the sellers tend to sell at high prices."

For the three-room flat in Sengkang, price ranges from S$129,000–S$163,000, while for the four-room flat, it costs around S$214,000–S$262,000. Larger flats range from S$282,000 to S$340,000.

Home seekers can also choose from the wide selection of 705 flats in Boon Lay Meadows located within Jurong West. For flats with two bedrooms, prices range from S$86,000–S$103,000, and units with three bedrooms are priced between S$138,000 and S$173,000. For flats with four bedrooms, buyers can get it for S$223,000–S$266,000.

According to industry players, they are anticipating to see greater demand for the two projects, with the Jurong West project being the more in demand of the two.

"These 1,200 BTO standard flats that have been launched on Friday is very welcoming news because this will give certainty in terms of owning the property come next three to four years,” said Mohd Ismail, PropNex Realty’s CEO.

"Unlike the other completed flats, BTO flats have got better opportunities for someone to be successful... even looking at the pricing, I think it is attractively priced. Jurong West, a relatively mature estate, will again have strong demand, especially from a lot of new families who want to stay closer to their parents. Probably, we can expect a stronger demand from Jurong West than Sengkang."

According to HDB, basing on flat applicant’s income during the first half of the year, most of the households will no longer be required to use cash just to meet their mortgage payments every month.