Last BTO flat launch of 2016 brings over 10,000 new units

Photo credit: HDB

Photo credit: HDB

Bringing 2016 to a close, the Housing Board (HDB) has truly brought in the goods with their last and biggest BTO and SBF flats launch this year with over 10,000 units.

The flats in this launch are expected to be particularly popular with applicants as they are in the popular up-and-coming Bidadari estate and also the mature estate of Bedok and Kallang/Whampoa. 5,110 new BTO units will be spread out between these 2 estates while the remaining 2,194 will be in Punggol. Close to 3,000 flats unsold from previous launches will also be put up for sale this time round. This includes executive flats and 2-room flexi units.

Photo credit: HDB

Photo credit: HDB

Earlier launches this year have included units in mature estates such as Ang Mo Kio and Tampines as well. Units in Bidadari have been favoured by young couples and families as it is in a good location in the city fringes, well-served by public transport and near a few schools. The Bidadari development, though new, will be considered a matured one as it is essentially part of the larger Toa Payoh estate. Although singles are now allowed to apply for new flats directly from HDB, they are restricted to only 2-room flats in non-mature estates.

Photo credit: HDB

Photo credit: HDB

Prices of the new BTO flats in the current launch range between $135,000 for a 2-room flat in Bedok to $503,00 for a 5-roomer in the same estate. A 4-room unit in Kallang is priced at $497,000. Prices stated are before the application of grants or subsidies.

The application deadline for this launch will be at 2359 hours on Monday, November 28. The next launch is scheduled for February.

Resale HDB flat prices likely to remain at current level

After many consecutive quarters of market stagnation, buyers are coming to accept current resale HDB flat prices as the new norm.

solacresMany have remained in inertia as they waited for HDB flat prices to fall. But even with the introduction of massive new BTO flat supply, prices have not budged beyond the 11.3 per cent drop since the April 2013 peak. And property analysts are not expecting any further fall in prices, saying that the current resale flat prices are probably as low as they can get, especially as the government is closely monitoring the market in order to create some sort of balance between  individual profit and public housing provision.

Though the number of resale HDB units sold increased by 0.4 per cent in October, prices fell slightly by 0.1 per cent. Prices of the larger 5-room flats fell the most, at 0.9 per cent, though the rarer 3-room flats segment saw a 0.6 per cent rise and similarly a 0.8 per cent rise was reflected in the executive flat market as these units are in higher demand.

houganghdbThe past quarter has seen the resale HDB flat price index fluctuating within the 1 per cent range, with a fall in August likely due to the Hungry Ghost month, followed by some correction in September. In the months ahead, prices of HDB flats are not expected to swing either ways though the number of transactions may increase as buyers begin to realise that the numbers are unlikely to drop any further.

Resale HDB flat prices fall in August

Photo credit: HDB

Photo credit: HDB

Rather than a market rebound, the HDB flat market may have to be content with stabilising prices and sales volume. August saw a 0.7 per cent dip in resale flat prices, led by a 1 per cent fall in 4-room flats, over the past 3 months after a slight rise in July. 3- and 5-room resale flat prices also inched down 0.6 per cent while executive condominium (EC) prices rose 0.8 per cent. The price drop is seen in both mature and non-mature HDB estates.

The Hungry Ghost month may also have had something to do with the drop in sales prices as buyers tend to hold off buying during that month though units with lower selling prices may have transacted hence pulling the average median prices down slightly. Since the market peak in April 2013, HDB resale flat prices have since fallen 11.5 per cent.

Photo credit: HDB

Photo credit: HDB

Property analysts predict a level market for the rest of the year, with price sustainability at best and as long as the economic forecast remains unclear and overall property market sentiment weak, any price rebound will be unlikely. Sales volume has however been rising, a promising sign, though as more new HDB flats reach completion within the next couple of years, more flat owners will be pushed to sell within a specified time period and competition may once again push prices down.

Sustainable and Community-focused projects win HDB Awards

Sustainability and community were the main drivers behind the winners of the Housing Board (HDB) Design and Construction Awards. 11 projects won for the HDB Design Award category and 12 Construction Awards were handed out to construction firms who had done well in the workmanship and structural works area.

Skyville@DawsonNotable winners included SkyVille@Dawson by WOHA Architects and Waterway Ridges by Surbana Jurong Consultants. SkyVille@Dawson features sky gardens for every 80 homes, that not only introduces greenery to the urban landscape, but also provides an area for community gatherings and exchanges. There is also a roof garden which links the 47th floor of each of the 3 blocks and even includes a 400m jogging track.

Waterway Ridges is a massive housing project near My Waterway@Punggol consisting of 7 blocks with a total of 832 units. The blocks are staggered in height and water is the main feature in the development. Harnessing the beauty of rainwater, 70 per cent of this natural resource will be channeled into the waterway by way of rain gardens, vegetated marsh areas and dry pathways.

Waterway RidgesA couple of this year’s winners upgrading projects from HDB’s Remaking Our Heartland scheme and the Neighbourhood Renewal Programme. The first are town centres in East Coast and the latter an upgrading project in Simei Street 1.

New HDB flats in non-mature estate prove popular

BuangkokWOods1Usually it’s the new HDB flats in matures estates which receive the most applications. But in Wednesday’s launch of 4,841 new Build-to-order (BTO) HDB flats, it were the units in Buangkok woods in Hougang which caught the most attention. In the same launch were units in the mature estate of Tampines and also in the non-mature estates of Sembawang and Yishun. The price difference between 3-room HDB flats in the 2 estates differ by about $20,000 with those in Tampines starting from $202,000 and $185,000 in Hougang.

The lower prices may have been the deciding factor for HDB flat seekers. Units in Yishun were starting from $156,000. As of Wednesday evening, the Hougang flats were already seeing 6 applicants for every 10 units while the 2 projects in Tampines had 2 to 3 applicants for every 10 units.

ValleySpringYishunHDBIncluded in the launch were 2-room flexi flats, which are much sought-after by singles who are now allowed to purchase new flats directly from HDB but only in non-mature estates. As per other HDB flats, they have 99-year leases or shorter ones for the elderly. These popular property-types were almost completely subscribed for within the first day of the launch.

For young families and couples looking for a flat in mature estates, the next launch might prove worthy of the wait, with 2,910 units in popular HDB towns of Bedok, Kallang/Whampoa and Bidadari. The last on the list will probably be of most interest to buyers.

Applications for the current launch will close on Tuesday, 23 August 2016.

High demand for bigger units in mature estates

Senja HeightsAccording to response from applicants for the latest HDB sales launch of BTO (build-to-order) and SBF (sale of balance) flats, bigger units in mature estates seemed to be most hotly contested.

3,770 BTO flats were rolled out in last week’s launch, with units available in Ang Mo Kio, Bedok, Bukit Panjang and Sembawang. In addition, 5,170 SBF flats were also available for selection across 29 HDB estates. The units in Bedok and Ang Mo Kio were most in demand as these mature estates have well-developed infrastructure and some buyers who have lived there most of their lives prefer to move within the estate.

bedoknorthwoods

Photo credit: HDB

Will this mean a corresponding demand for resale flats of similar size in the same estates? It is debatable as prices of larger resale flats have already been falling as demand waned. As the availability of new units direct from HDB, and options of going into the private property market beckons, HDB upgraders will have quite a few pros and cons to weigh. While private homes within the same price range may be quite a lot smaller, rental and future value appreciation of selected private properties may entice buyers. On the other hand, upgrading within the resale HDB flat market may get you a larger unit though not necessarily with future sale benefits. Rental demand however could still be high should the unit be near a MRT station, school or other amenities.

The A-Bi-Cs of mature HDB estates

Bishan and Bidadari. Both mature estates and both in popular demand. The only difference might be that Bishan is more established while Bidadari is a new foundling in the already-mature estate of Toa Payoh.

The recent buzz around the centralised Bidadari estate has prompted many to call it the “next Bishan”. How exactly do these 2 estates compare?

BidadariPhoto credit: HDB

As far as history goes, Bishan was one of the first model HDB towns 30 years back. And now Bidadari, which means “angel” or “fairy” in Malay, seems to be taking its place as the next big thing. Both B-word towns have good city-fringe locations and are built on land which were once cemeteries. Bidadari will have the luck of having Bishan run its course with the stigma of living on cemetery land. Buyers of today are no longer as affected by this fact.

Even though property agents and analysts say they are unsure how resale prices and infrastructure in this new estate will pan out, the initial response is very positive. Both its November 2015 and February 2016 launches were about 23 times oversubscribed despite the more expensive sales tags. Its proximity to the city centre plus the 3 MRT stations (Potong Pasir, Bartley and Woodleigh) serving it, Bishan makes up for the difference only by its direct access to its own shopping mall, park and amenities such as sports facilities, library, community centre, offices and business facilities. The Bishan MRT station is also an interchange station between the North-South and Circle MRT lines.

Bishan HDB estatePhoto credit: HDB

Resale HDB flats in Bishan can go up to $730,000 for a 5-room flat. While the new BTO flats in Bidadari were launched at prices between $544,000 and $625,000, they look set to reach possibly higher resale prices once they are available in the resale market.

 

HDB Flats – Mature vs Non-mature estates

Bukit Batok HDB - WestplainsThis year, in response to the high demand for new HDB flats in popular and mature estates, the Housing Board will be including more mature-estate-based BTO flats in their sales launch.

In February’s sales launch, they have already included some in Bidadari and Bukit Batok. Bidadari is considered a mature estate, part of Toa Payoh and the units in the previous launched have flown off the shelves because of its prime location. It is part of a mature estate yet holds the exclusivity and unique nature-friendly environment and freshness of a new estate. 1,594 new Bidadari BTO flats were offered up in this month’s launch and 1,655 more in Bukit Batok. 921 units were also available in Sengkang.

Alkaff Oasis Bidadari HDBAs per the response to last year’s Bidadari sales launch, the five-room and 3-Gen flats, with a starting price of $550,000, in this new estate received the most eyeballs.

Although mature estates often have a space constraint and are unable to absorb more new blocks, HDB is looking at allocating half of their 18,000 units to be launched this year to mature estates. In May’s launch, the public can look forward to new units in Ang Mo Kio, Bedok and Bukit Merah. Most will be 3- and 4-room flats, there in Ang Mo Kio, 2-room flexi and 3-generation units will also be available. This may be good news for smaller families or singles and senior citizens hoping to live near their parents or children.