BT : Biggest-ever launch of new HDB flats

Business Times - 01 Jul 2010

Biggest-ever launch of new HDB flats

Strong demand seen for 2,696 flats in Punggol, Sengkang due to low prices

By UMA SHANKARI

THE Housing and Development Board launched close to 2,700 new build-to-order (BTO) flats at Punggol and Sengkang yesterday - the largest number of such flats ever offered at one go.

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

The move comes as the flash estimate for the HDB resale price index is due to be released today. The index will show how much resale prices of HDB flats rose or fell in the second quarter of this year

'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.

With yesterday's launch, HDB has now launched a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.

Demand for the newly released flats is expected to be strong as their prices are low compared with those of nearby resale flats, analysts said. HDB has priced the new flats around 30-40 per cent less than the current resale prices of similar flats in the locality.

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

In Q1, resale flats in Punggol and Sengkang commanded cash-over-valuation sums that were slightly higher than the national average, demonstrating the popularity of flats in the two areas, Mr Tan said.

In particular, analysts expect the 1,072 premium flats at Waterway Terraces to be snapped up. The design for the project - the first public housing development along the upcoming Punggol waterway - was chosen after an international competition held last year. The winning design, by Group8asia and Aedas, incorporates many eco-friendly features.

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

The 2,696 flats comprise 238 two-room, 399 three-room, 1,585 four-room and 474 five-room units. As per HDB policy, 95 per cent of the supply will be set aside for first-time buyers.

HDB's plan is to launch at least 12,000 new BTO flats by September - and more if there is demand. Upcoming projects will have a good geographical spread, covering areas such as Bukit Panjang, Jurong West, Yishun and Woodlands, the agency said.

This month, HDB will launch about 1,000 BTO flats at Bukit Panjang and Jurong West.

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