News: HDB launches over 7,800 flats in combined sales exercise

Aug 12, 2020

The flats range from two-room flexi to five-room flats to meet the diverse housing needs of singles, the elderly, first-timers and second-timer families. Photo: Parc Residences @ Tengah

The Housing and Development Board (HDB) on Wednesday (12 August) launched 7,862 new flats for sale – its biggest Build-to-Order (BTO) launch since it moved to a quarterly launch in 2015.

A combination of the postponed BTO launch in May and the scheduled BTO exercise for this month, the flats are located within the non-mature towns of Tengah, Cho Chu Kang and Woodlands as well as the mature towns of Bishan, Ang Mo Kio, Pasir Ris, Geylang and Tampines.

The flats range from two-room flexi to five-room flats to meet the diverse housing needs of singles, the elderly, first-timers and second-timer families.

HDB noted that the new flats are priced with a generous subsidy, taking into account factors like flat attributes, location and prevailing market conditions.

“HDB’s prices are considerably lower than the transacted prices of comparable resale flats in the vicinity. In addition, 2-room Flexi flats are priced taking into account the lease chosen,” HDB said in a press release.

A three-room unit at Keat Hong Verge (Choa Chu Kang), for instance, is priced from $164,000, including grants, while a similar unit at Costa Grove (Pasir Ris) will go from $185,000, including grants.

Suggested article: HDB May/Aug 2020 BTO Launch Review (Bukit Batok, Choa Chu Kang, Tengah, Pasir Ris, and Tampines)

This comes as eligible first-timer families can avail up to $80,000 in Enhanced CPF Housing Grant (EHG).

“With EHG, flat buyers could pay as little as $10,000 for a two-room Flexi flat, $89,000 for a three-room flat, $193,000 for a four-room flat, and $360,000 for a five-room flat,” explained HDB.

Aside from the grant, first-timer families will continue to be given priority in flat allocations.

Applicants wanting to live close to their parents or their married children within the same BTO project can apply under the Multi-Generation Priority Scheme, added HDB.

Lee Sze Teck, Director of Research at Huttons Asia, said the huge launch “is justified as demand for new flats was bottled up during the circuit breaker period”.

He noted that the HDB resale market registered a quantum leap in transactions in June, with sales remaining elevated in July.

He revealed that his top picks for this launch are Dakota One in Geylang, Costa Grove in Pasir Ris, and Parc Residences @ Tengah.

Lee liked Dakota One since amenities such as the Dakota MRT station and Old Airport Road Hawker Centre is almost at its doorstep.

For Costa Grove, he pointed to the project’s proximity to White Sands Shopping Centre and Pasir Ris MRT station. “In the future, there will be a new integrated development and a Cross Island Line station nearby as well,” he said.

Parc Residences @ Tengah, which will feature Singapore’s first car-free town centre, will “appeal to those who love the nature as the nature is integrated into its design”.

“One word of caution for buyers looking at Tengah is the large supply of flats which has been offered since November 2018. An estimated 10,600 flats will be offered by February 2021. These flats will be completed within the next three to five years, giving a bit of competition to those who are looking to sell after the minimum occupation period,” he said.

Meanwhile, HDB said it will offer around 5,700 BTO flats in Bishan, Tampines, Sembawang, Toa Payoh and Tengah in November and another 3,500 BTO flats in Kallang Whampoa, Bukit Batok, Tengah and Toa Payoh in February 2021.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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