The Build-to-Order (BTO) flats shall be set up in 2018, approximately to hit 17,000 flats, and it is expected to maintain the quantity of flat supply same to the present, published in the blog post of the dynamic Lawrence Wong, The National Development Minister, December 14,  2018, Thursday morning.

These brand new flats will be distributed both in progressive or matured -towns and non- progressive/ Non-Mature areas which include the looming Tengah town, the initial launching of Housing Board flat in the said areas.

The Sengkang, Yishun, and Sembawang will also have its flat launches by the second half of 2018,  which would mean, a matter of 2 1/2 years to wait,  contrary to the standard which is three up to four years.

Mr. Wong stated, “We will maintain in calibrating our flat flow meticulously, focusing on the demand and sustainability over the resale market of HDB.”

Considering the demand for public housing, Mr. Wong stated that the government has taken various actions to assist the first -timer family to transfer into their new homes as soon as possible.

In February, flat owners will experience a considerable hike of Central Provident Fund( CPF) property grant that they can avail from as high as $ 50,000, $40,000 and $30,000. It depends on the size of the flat when purchased straight to the resale market.

Almost 6,900 first-timer families availed from this privilege grant, told Mr. Wong.

Rental support in the Parenthood Provisional Housing System, wherein available HDB are rented by couples who waited for the availability of their brand new flats, were discussed also.  This is enjoyed by 840 households.

Side by side with it is the launching of HDB’s ROF or Re-offer of Balance Flats exercise in August. This is best to those households with urgent and greater housing needs.  About 800 households have reserved a flat for the exercise and this is ongoing.

ROF caters undisposed flats from the past Sale of Balance Flats Exercise and this will be done at least twice a year.

Mr. Wong said, ” This simply implies that new couple has a greater chance for more accessible and in the budget housing options to start a beautiful parenthood journey earlier.”

Real estate critics revealed to  The Strait Times that implementation of building 17,000  brand new flats next year is not something extraordinary, it is quite clear and sincere, the government aims to grant housing to the first -time flat patrons.

Ismail Gafoor, the CEO of PropNex Realty said, ” It is very straightforward that the figure of flats declared of the minister for the coming year is quite enough, giving Singaporeans sufficient chance to acquire a flat according to their need and choice.”

This marks the third successive year of the BTO to supply  flat hovering figure at 17,000- there were at least 17,584  units commenced this year alone and in 2016 it hit 17,891

In  2011, about 25,000 BTO flats launched and in 2012 it reached to 27,000.  Records also showed that 25,000 flats in 2013, in 2014 hit 22,500  and 2015 it went down to 15,000 only.

Meantime, there is a recent slump in demand for BTO flats in 2017. The total subscription charge for a three-room and huge flats was 2.4 times in 2017, in contrast to 3.4 times in 2016, Wong Xian, the consultancy’s and research head of Orange Tee, emphasized.

The recent BTO supply data is a positive approach because of the effective implementation of the Re-offer of Balance Flats exercise and shorten waiting time for flats thus giving more chance for the authorities to evaluate the scheme explained by Eugene Lim, the executive officer of ERA Realty.  

Although 2017 showcased a great flow of collective sales of the private property market, it somehow influences the BTO figure for the coming year,  the analysts told. This is due to the different markets that they have,  a great bulk of private home purchasers for their investment interests.

Nevertheless, the collective sale trend can help in pushing increases in prices over the resale market, said,  Sing Tien Foo, the professor of the National University of Singapore, Department of Real Estate.

Professor Sing further added, ” When the resale along with the continuing increase of private housing prices due to the demand of en bloc residents in 2018, we then anticipate spillovers  to happen from the private housing markets and the resale over BTO’s markets.” He stressed, that these directly affects those who are on the border of income threshold to own BTO flat.

Ong Teck Hui, the JLL Singapore’s director of research and consultancy said, ” Enough supply of BTO flats ignites an atmosphere of demand in resale flats and maintains resale prices. Thus owners who upgrade which mean from HDB to private property wherein can be more practical  in their investment for private homes.”

One of the spotlights of MR Wong’s post was the Tengah, found close to the looming District of Jurong Innovation and proud to showcase driverless buses and car-free zone town.

Tengah is foreseen to be famous and progressive in the future, though property buyers might not be able to see it as very attractive because of development in on process yet, according to industry experts.

Mr. Lim explained, ” As the property launch, the first flats ever in the area, demand at the start might be a bit slow more so that sometimes buyers have seen other established property developments. But as the development of new areas progresses, we must anticipate an increasing demand for flats will follow.

Some information of the most recent, approaching and Sale of Balance Flats (SBF), past Build-To-Order (BTO) and Re-Offer of Balance Flats (ROF) sales launching. Watch out for more BTO developments coming to your areas.

Build-To-Order

Month for launching – February 2018

Estate/ Town ( Non-Mature)- Choa Chu Kang

Flat Mix
2 -room Flexi
3 -room
4- room
Anticipated No of brand new flats
570

Estate/ Town ( Non-Mature)- Woodlands

Flat Mix
2 -room Flexi
3 -room
4- room
5- room

Anticipated No of brand new flats
620

Estate/ Town (Mature)- Geylang

Flat Mix
2 -room Flexi
3 -room
4- room

Anticipated No of brand new flats
1,190

Estate/ Town (Mature)- Tampines

Flat Mix
3 -room Flexi
4 -room
5- room

Anticipated No of brand new flats
1,250

Please be reminded that information is tentative and may be subject to change.

Categories: BlogProperty News