First BTO exercise for 2010 launched

As the trend of rising Singapore housing prices continues, the government announced several measures to increase supply. These measures include the latest Build-To-Order (BTO) exercise by the Housing and Development Board (HDB).

Under this BTO exercise, a total of 1,291 new flats were launched in two separate locations on Tuesday.

The majority of the new units offered by HDB in its latest BTO exercise are four-room flats and studio apartments in Hougang and Choa Chu Kang.

Prices of four-room units range from $226,000 to $288,000, and studio apartments are selling between $64,000 and $89,000.

The first day of the launch already saw a steady stream of prospective home buyers. The closing date for applications for this BTO exercise is on January 18.

With prices of HDB resale flats hitting a record high, the government has made plans to raise its supply. Aside from holding no less than one BTO exercise per month, there are also two executive condos in the pipeline - at Yishun and Buangkok.

The Urban Redevelopment Authority also launched a residential development at Choa Chu Kang Road for tender on Tuesday. The parcel of land is the first residential site to be sold under the Government Land Sales (GLS) Programme for H1 2010.

According to analysts, the rise in housing options will help calm the resale market.

“This will cause a lot of Singaporeans to realize that there is no rush because you have more and more land supply, and more and more units to select from,” said Director Chris Koh of Dennis Wee Group.

“And that may eventually bring prices down to a plateau and stop it from rising so quickly.”

However, Mr. Koh noted that there will always be a group of people who have an immediate need for a flat.

“To buy a brand new flat requires time, whereby they construct it and maybe you get it a few years down the road, whereas there will always be a group of people who will still go to the resale market, they may need a place immediately,” Mr. Koh said.

The resale market will continue to offer housing for home buyers who have crossed the income ceiling of $8,000.