The Housing and Development Board (HDB) has launched 5,101 flats for sale under the August 2018 Build-To-Order (BTO) and Re-Offer of Balance Flats (ROF) exercise.
The 4,375 BTO units on offer are spread across four projects in Punggol and Yishun, said the HDB in a release on Tuesday (28 August).
It noted that eligible first-timer families can enjoy up to $80,000 of housing grants, comprising the Additional CPF Housing Grant (AHG) (up to $40,000) and the Special CPF Housing Grant (SHG) (up to $40,000).
With these, buyers of two-room Flats could pay as little as $4,000, $103,000 for three-room, $188,000 for four-room and $329,000 for five-room flats.
Analysts expect the flats in Punggol to be more popular than those in Yishun.
“This is due to the winning formula of great location near the sea, connectivity, wide range of facilities and surrounding amenities,” said PropNex Realty CEO Ismail Gafoor.
In fact, he expects subscription for Punggol flats to exceed three to four times the supply available.
In concurring, ERA Realty Network key executive officer Eugene Lim said that while the flats in Punggol have higher selling prices, they are expected to receive more interest from buyers – especially from young families.
This is because they are “located near the upcoming Punggol Coast MRT station and the Punggol Digital District. Some of the flats will also sea views,” said Lim.
The Yishun flats, on the other hand, are slightly further away from the MRT station. Nonetheless, their attractive price – which start from $248,000 before grants for a four-room flat – will be a draw for applicants, he added.
More: Can you afford an HDB flat? Check your affordability now.
Meanwhile, the 726 ROF units offered were from the November 2017 Sale of Balance Flats (SBF) and February 2018 ROF exercises.
They comprise 67 units of two-room Flexi, 171 units of three-room, 294 units of four-room, 152 units of five-room, 33 units of 3Gen and nine units of executive flats across various towns/ estates, said HDB.
It added that it will set aside at least 95 percent of the flat supply for first-timer families and up to five percent for second-timer families.
“Elderly may apply if they meet the prevailing eligibility conditions to buy a two-room Flexi flat,” said HDB while noting that families will be given priority in flat selection.
HDB also announced that flat buyers taking an HDB loan can now retain up to $20,000 each in their CPF Ordinary Account (OA).
“Previously, flat buyers had to fully utilise the balances in their CPF OA to pay for their flat purchase, before they took up an HDB housing loan.”
It revealed that this option will be available to “flat buyers who have yet to collect the keys to their new flats, as well as resale applications received from today”.
PropNex Realty’s Ismail Gafoor said the move “will provide flexibility for those who are retrenched or in transition between jobs (without monthly CPF)”.
“This way, the surplus in their account allows them to sustain their upcoming instalments in the next few months. Those choosing to retain the $20,000 can also benefit from the CPF interest over time.”
HDB said that applications for the August sale exercise can be submitted online via the HDB InfoWEB until 3 September (Monday).
It reminded buyers that applications are not processed on a first-come, first-served basis. Instead, applicants will be shortlisted using a computer ballot. As such, they could submit their application at any time before the closing date.
Finally, HDB revealed that the next BTO launch will be held in November, in which it will offer around 3,800 flats in Sengkang, Sembawang, Tengah, Tampines and Yishun.
“Of these, the flats in Sembawang, Sengkang and Yishun will have a shorter waiting time of 2.5 years instead of the typical three to four years. These are the first batch of projects with shorter waiting times that were first announced in 2017.”