Residential Market News Extract - 28 September 2012

Another 2,000 BTO flats to be rolled out in 2012 to keep lid on prices

The Housing and Development Board (HDB) is rolling out more flats this year in a bid to arrest runaway price increases and help meet housing demand.

An additional 2,000 units will be rolled out this year, bringing the new supply of Built-to-Order (BTO) flats up to 27,000 over the 25,000 originally planned.

Said Eugene Lim, key executive officer at ERA Realty Network: "Many resale flat sellers, especially those in mature estates, have increased their asking prices following the recent media publicity on million-dollar resale flats ... These launches are timely as they help to put a lid on runaway resale price increases, in particular those in the mature estates."

HDB said yesterday that a total of 7,055 flats will be launched under the joint Built-to-Order (BTO) and Sale of Balance Flats (SBF) exercises. This is in addition to a further 6,400 flats which will be launched in November.

Seven BTO projects offering 3,727 flats in two non-mature towns (Choa Chu Kang and Woodlands) and three mature towns (Ang Mo Kio, Kallang Whampoa, and Tampines) were launched yesterday.

Selling prices for a five- room flat in Keat Hong Quad (bounded by Choa Chu Kang Ave 1 and Choa Chu Kang Ave 7) - a non- mature estate - will start from $313,000 (excluding grants) and $303,000 (inclusive of grants).

Five-room flats at Tampines GreenLace (at the junction of Tampines Ave 5 and Tampines Ave 8) - located in a mature town - will start selling from $384,000 (excluding grants), and $374,000 (including grants).

Mr Lim said: "Depending on the flat type and location, the price difference between the BTO flats launched and comparable-sized resale flats that are 12 to over 30 years old can be $60,000 to $130,000.

"For first-timer households, this represents huge savings if they are able to wait for the three years or so for the flats to be completed. The monies saved could well be put to other more productive uses."

HDB said first-timers will enjoy priority flat allocation, with at least 95 per cent and 85 per cent of the BTO flat supply - excluding Studio Apartments (SA) - set aside for them in mature towns and non-mature towns respectively.

Separately, a further 3,328 balance flats in 11 non-mature and 13 mature towns will be sold under the SBF exercise.

They comprise 818 SAs, 697 two-room flats, 302 three-room flats, and 1,016 four-room flats 471 five-room flats, and 24 executive flats. At least 95 per cent of the flat supply (excluding SAs) will be set aside for first-timers.

About 23 per cent of the flats are already completed, with the remaining 77 per cent under construction.

HDB is also introducing an opt-in scheme for the sanitary fittings in bathrooms, and is piloting an "open-kitchen" concept for flats at Teck Ghee Parkview. Buyers will be given a choice to opt for a partition wall between the living/dining area and the kitchen to better suit their lifestyle needs.

Applications for new flats launched in the September 2012 BTO and SBF Exercises can be submitted online, up to Oct 3, 2012. Applicants can only apply for one flat type/category in one town under either the BTO or SBF exercise.

A further 6,400 BTO flats will be launched in November in Queenstown, Bedok, Toa Payoh, Sengkang and Choa Chu Kang.

Source: Business Times – 28 September 2012

 

No pre-installed taps, basins in new flats

Home owners are being given greater flexibility when it comes to choosing flats and fixtures to suit their tastes.

Sanitary fittings such as wash basins and taps are no longer being fitted in new flat launches, as of yesterday.

This means owners will need to opt in, to the tune of up to $4,300, if they want them.

A Housing Board spokesman said: "With sanitary fittings included as an optional component, home buyers now have the flexibility to do their own interior design or renovation without disposing of the ones provided by HDB." He added that this would minimise waste and cost for the buyers.

Up to 16 per cent of new flat owners replace one or more of the sanitary fittings provided by the HDB, according to surveys carried out over the past two years.

The HDB is also piloting an open kitchen concept for the 576 units at Teck Ghee Parkview - its latest sales exercise.

These flats will be sold without a partition wall separating the living room and the kitchen area.

Buyers will need to pay extra - about $2,000 - if they want the wall installed. This is to give them more choice in terms of layout and design, the HDB said.

Located next to Ang Mo Kio Avenue 3, Teck Ghee Parkview offers standard three-room flats from $249,000, with four-room units costing from $398,000 and five-room homes starting at $498,000.

Source:  The Straits Times – 28 September 2012