HDB launching another 10 build-to-order projects...

[Dennis Ng]

Supply of new HDB flats are coming, buyers just have to be patient, it takes time for market to stabilise since construction takes 2 to 3 years.

Mah Bow Tan cannot build HDB flat like "frying kway Teow" and get them ready to you in 3 mins.

Cheers!

Dennis Ng

Mar 25, 2011
10 more HDB build-to-order projects in next 2 months
For the first time, HDB releases info as it launches two projects
By Daryl Chin

CALL it better room service.

Even as the Housing Board (HDB) launched two build-to-order (BTO) projects in Jurong West and Sengkang yesterday, it also provided information of 10 more expected to be offered in the next two months.

This is the first time the HDB is doing so, in a bid to better help buyers land their dream home.

Successful applicants will be able to choose units as quickly as a month after the launch, instead of nine weeks previously.

These changes were announced at the Committee of Supply debate in Parliament last month. Then, National Development Minister Mah Bow Tan had said they were aimed at making HDB flats more accessible and affordable to first-time buyers and quickening the buying process.

First-timers The Straits Times spoke to welcomed the release of more information on BTO launches in estates like Tampines and Punggol. The HDB provided details like the addresses, the total number of flats and the flat types.

Under the BTO scheme, flats are built after sufficient interest has been gathered from eligible buyers.

Sales manager Melvinder Singh, 31, said the longer BTO list will allow him and his wife to better discuss their options.

'Let's say I spot a location I want, like the Tampines project in May. Then, there is no reason for me to bid for other upcoming projects and waste my chances and energy,' he added.

But the availability of more information could also skew buying behaviour, said financial consultant Cliff Teo, 29.

'More buyers might gun for the popular areas but that might mean desperate buyers also have a better chance going for the less popular areas,' he noted.

The two BTO projects launched yesterday offer more than 1,500 flats. The units in the Boon Lay Fields project in Jurong West come with minimal fittings in the kitchen and bathrooms.

About half of the 491 units are four-room ones, from $270,000. There are also three-room flats (from $168,000) and five-room types (from $334,000). They are estimated to be ready by the first quarter of 2014.

The Compassvale Ancilla project in Sengkang will yield 1,036 units which come with better-quality fittings.

There will be 224 studio flats as well as units with three rooms (140), four rooms (420) and five rooms (252). Prices start from $77,000, $194,000, $303,000 and $375,000 respectively. Work is expected to finish by the third quarter of 2014.

With the exception of studio apartments - to meet the needs of those aged 55 and above, 95 per cent of the new flats launched yesterday will be set aside for first-time households.

The monthly household income ceiling for a three-room unit in Boon Lay Fields is $5,000, up from $3,000 previously, and $8,000 for the rest.

The deadline for applications is March 30, with analysts expecting an oversubscription rate of four times for both projects.

Said Mr Nicholas Mak, SLP International's head of research: 'With more certainty in the market, some people might decide to go for the locations they want. But the project in Sengkang is still fairly attractive because of nearby facilities.'

darylc@sph.com.sg

[Ax]

Dennis..

actually i'm planning to get married sometimes in the next 1-2 yrs.. been looking at BTOs... however, haven been able to get one yet. going to try for the jw one...

think worse case, will look for resale.. do you think resales prices for HDB will continue to stabilize in the next 1-2 yrs with all these flats?

i think 7000 flats in 2 months is a hell lot of flats.... i really wonder if they will all be sold... i know election is coming soon...

[Dennis Ng]

Dennis..

actually i'm planning to get married sometimes in the next 1-2 yrs.. been looking at BTOs... however, haven been able to get one yet. going to try for the jw one...

think worse case, will look for resale.. do you think resales prices for HDB will continue to stabilize in the next 1-2 yrs with all these flats?

i think 7000 flats in 2 months is a hell lot of flats.... i really wonder if they will all be sold... i know election is coming soon...

Hi Ax,
Property market usually go through cycles, the reason is there will always be period where Demand exceed Supply, then developers and the government keep pushing out new projects, until it reach a tipping point where Supply exceeds Demand.

This always happen since it takes 2 to 3 years to build new flats or condos, so there is always a "time lag" between Demand and Supply and Supply and Demand thereafter...

Having said all this, if inflation continues to stay high in next few years, property prices might stay high...so the No. 1 question I ask myself is "What if I'm wrong, will I be financially ok?"

Currently, I mainly own 2 properties, my own home (5 room HDB Resale Flat) and a Condo unit in Icon, which I bought in April 2010 for the long term redevelopment potential of Tanjong Pagar...I'm unlikely to sell any of these 2 properties.

I also co-own 3 units in an old Condo development (bought for its enbloc potential). Recently, we (my 2 property sifus and I) sold 1 unit and recouped back 70% of our total investment, so now out of the remaining 2 units, 1 unit is "free", and this helps to reduce our risks in case enbloc sentiment turns down as Pine Grow enbloc is unlikely to succeed, in our opinion.

[Ax]

Hi,

Thanks Dennis...

I remember years ago... there was an oversupply of HDB flats also? and then the supply was reduced sharply... now this seems to be a repeat of the situation?

[Dennis Ng]

Hi,

Thanks Dennis...

I remember years ago... there was an oversupply of HDB flats also? and then the supply was reduced sharply... now this seems to be a repeat of the situation?

Hi Ax,
yes, Property Booms and Busts always recur. The reason is there is a lag time of 2 to 3 years to build a property, be it HDB or private condos.

So when demand goes up, price go up as Supply cannot catch up demand (supply needs 2 to 3 years as explained)....so prices keep going up, and developers and HDB will then keep offering more Supply....until economic situation slows down, demand slows down and "suddenly" the Trend reverses, becomes a case of Over-supply instead...

you can go to this link to check out the up-coming Supply of condos:

http://www.ura.gov.sg/realEstateWeb/rea ... roller.jpf

Latest info available as of (Q4 year 2010):

Of course, developers can try to delay construction, by pushing Supply forward, but they cannot make the supply disappear, just a matter of timing of completion they can delay by say, 1 year.

[wemakebread]

HDB Press Release 29 Mar
http://www.hdb.gov.sg/fi10/fi10296p.nsf ... enDocument

Below is extract from above news release:

Apart from the potential supply from the GLS Programme, there is also supply from projects in the pipeline which have been initiated earlier, both from the Government and private land sources.

As of 4th Quarter 2010, there were about 65,699 private residential units in the pipeline which would be completed over the next few years.
Of these 65,699 private residential units, there was also an inventory of about 32,776 private housing units which have not yet been sold.
These comprise units that had been launched for sale by developers, units that had pre-requisite conditions for sale and which could be launched for sale immediately, as well as units with planning approvals for which pre-requisite conditions for sale could be obtained quickly from the Government and made available for sale.

[kolch]

Hello.

I am entitled to choose a HDB unit at the recent BTO launch at Choa Chu Kang (Keat Hong Quad).
Can anybody give some suggestion on which one is better? HDB unit with highest floor or the unit with second highest floor?
Some people tell me to avoid the unit at highest floor as these units are normally hot due to the sunlight. But from the info I get from HDB, the current design of HDB will have double roofing construction at top of the building. This will provide some heat resistance to the highest unit that resulted from the sunlight. Also, there will be water tanks on top of the unit that I have mentioned. Anything I need to consider for the water tanks as well?

Thanks.

BR,
Kok Leong

[accord]

Hi,

highest floor unit will be constantly expose to heat (direct sunlight) and water (rain water).
Over time, the concrete slab may have water proofing problems due to small cracks.

You may also like to find out more info from people who are in renovation field or from an architect.

[candy_chia]

For me, I will choose the highest floor as I don't need to worry about dripping water from others laundry & best of not, no worry of noise from neighbour above my floor. (currently residing on 2nd highest floor)

Previously moved house, despite high resale price as the noise of continuous knocking & drilling (8am all the way till 12 midnight) from our inconsiderate neighbour upstair is affecting our mental health.

noise.png (139.84 KiB) Viewed 24214 times

Furthermore, the resale price of the highest floor fetch handsome profit when you are considering of sale after minimum occupation period.

Hello.

I am entitled to choose a HDB unit at the recent BTO launch at Choa Chu Kang (Keat Hong Quad).
Can anybody give some suggestion on which one is better? HDB unit with highest floor or the unit with second highest floor?
Some people tell me to avoid the unit at highest floor as these units are normally hot due to the sunlight. But from the info I get from HDB, the current design of HDB will have double roofing construction at top of the building. This will provide some heat resistance to the highest unit that resulted from the sunlight. Also, there will be water tanks on top of the unit that I have mentioned. Anything I need to consider for the water tanks as well?

Thanks.

BR,
Kok Leong

[kolch]

Hello Accord:

Thanks for your reply.

Warm regards,
Kok Leong

[kolch]

Hello Candy:

Thanks for the reply. After a discussion with my wife, we have decided to take the highest floor as we have little tolerance to noise as well. The Keat Hong Quad is a good project as most of its units are in North-South orientation; also, it has a park beside two of the blocks. By choosing the unit that is facing the park (no obstacles in front of the unit), I believe the heat issue could be alleviated a bit by the good ventilation.

Thanks again.

Warm regards,
Kok Leong

[ui21cn]

Congratualtion to Kok Leong !

Picking up a BTO at a good location and good environment will help you to build up the property investment porfolio pretty fast.
While HDB is not to be view as "Investment vehicle" but some potential gain from the BTO years down the road will provide easier entry for other investment.


All the best
Wei Teck

[kolch]

Hi Wei Teck:

This is the first house I buy in my life after paying so many years of rent, so I see this as a Home and a place for me to build my family But I do agree with you that ones can easily benefit from selling the BTO especially at the current resale market. Thanks

Warm regards,
Kok Leong