Why are BTO projects so hot?

Sengkang has grown to become an estate with plenty of amenities like Compass Point, the MRT and a wet market.

As such, applications for Fernvale Ridge in Sengkang, a Built-To-Order (BTO) project, comprising 126 five-room units, have been 10 times oversubscribed.

The flats, which were priced between $281,000 and $352,000, had attracted 1,260 applications.

Meanwhile, another BTO project, the River Lodge in Sembawang, was also five times oversubscribed. The selling price for its four-room flats ranged between $212,000 and $268,000.

Property agents interviewed were not surprised, pointing out that first-time buyers, usually young couples, have been priced out of the resale market.

“Permanent residents who have become Singaporeans are in the resale and direct HDB market, and young couples looking to buy a home cannot afford to pay high cash-over-valuation, so they have no choice but to turn to BTO,” said Mr. Jack Palanisamy.

However, in Sengkang, the attraction among home buyers is that it now offers several amenities while it is just a young estate, he said.

Earlier BTO projects within the area that also found ready buyers include Fernvale Vista, Fernvale Crest, Fernvale Residence, Fernvale Palm and Fernvale Court. According to another agent, Mr. G Rajan, the prices of BTO flats could be another reason for their growing interest. BTO flats are more affordable compared with a four-room flat in a mature estate, which is now going for more than $400,000, he said.

HDB received 1,465 applications for Sembawang River Lodge and 3,359 for Fernvale Ridge at 5pm yesterday.

According to HDB, it had expected robust interest for flats in these two BTO projects, as the "projects are attractively priced below their equivalent market value".

HDB closed the applications at midnight.

In December last year, five-room units at SkyTerrace@Dawson and SkyVille@Dawson in Queenstown, under the BTO project were 11.9 times oversubscribed, with 2,090 applications received for 176 flats.

In April 2010, HDB plans to launch 1,200 BTO flats in Punggol.