HDB launches 2,696 BTO flats at one go

HDB has launched nearly 2,700 new Build-To-Order (BTO) flats at Sengkang and Punggol – the largest number of flats offered in a single release.

A total of 2,696 flats are being offered for sale at Rivervale Arc and Fernvale Foliage in Sengkang and at Waterway Terraces in Punggol.

The launch comes as the flash estimate for the HDB resale price index is expected to be released today, which will show how much resale prices of HDB flats increased or declined in Q2 2010.

“By releasing such a huge supply of new flats a day before the HDB resale price index flash estimate, HDB is sending a clear message of its commitment to keep housing available and affordable for first-time home-buyers,” said Eugene Lim, associate director of ERA Asia-Pacific.

Currently, HDB has launched 8,828 new BTO flats for sale in the first half of 2010, a figure that is equal to the BTO supply for the whole of 2009.

According to analysts, a strong demand for the newly launched flats is expected as they are being offered at low prices compared with resale flats. Prices for the new flats are 30 percent to 40 percent less than the current resale prices of similar flats in the vicinity.

“Previous BTO flats were typically sold at 17 to 30 percent cheaper than comparative flats in the respective vicinities of those BTO projects. And they were all over-subscribed,” said Adam Tan, a spokesperson at PropNex. “Now, with even lower prices compared with similar resale flats, we can expect demand to increase.”

Many analysts expect that the 1,072 premium flats at Waterway Terraces will be snapped up. The design for the development – the first public housing project along the forthcoming Punggol waterway – incorporates several eco-friendly features and was chosen during an international competition last year.

“The flats next to the waterway are expected to be highly sought after,” said Mr. Lim. “Where else can you get waterfront housing at such affordable prices? We may see an oversubscription of five to six times for these flats.”

Prices for the three-, four- and five-room flats at Waterway Terraces start from $186,000, $300,000 and $374,000, respectively.

The 2,696 flats have 474 five-room, 1,585 four-room, 399 three-room and 238 two-room units. As per HDB policy, 95 percent of the supply will be reserved for first-time homebuyers.