A version of this article is published in The Straits Times, Top of the news Section, Page A8, 4 September 2018, with the headline ‘Demand for new Punggol BTO flats far exceeds that for Yishun’. Alternatively, a Chinese version of this article is published in Lianhe Zaobao, Singapore Section, 4 September 2018. Exclusively written by SLP Research & Consultancy Department.
Applications for the Housing & Development Board (HDB) Build-To-Order (BTO) & Re-Offer of Balance Flats (ROF) exercise for August 2018 closed on 3 September.
The overall application rate for 3-room and larger flats in Punggol were oversubscribed at rates of 2.8 for 3-room flats, 3.8 for 4-room flats and 6.6 for 5-room/3Gen flats.
For Yishun, only 3-room flats were oversubscribed at a lower overall application rate of only 1.4 as compared to the subscription rate of the same flat type in Punggol.
Speaking to The Straits Times and Lianhe Zaobao, ZACD Executive Director, Nicholas Mak said that despite the slightly higher prices, the Punggol flats were more popular than the Yishun flats as they are located near the upcoming Punggol Coast MRT station and the existing Punggol Point LRT Station.
In addition, some of the flats in these two Punggol housing projects may come with sea views. On the other hand, the Yishun flats are located relatively farther away from Yishun MRT station, which make them less appealing to homebuyers.
These figures could signal that HDB flat applicants are very selective and would prefer flats that has a better chance for higher price appreciation in the near future, such as those flats that are well-located. It could also point to some applicants are attracted to flats in locations that offers interesting outdoor recreational options.
Mr Mak also noted that prior to the launch of this BTO exercise, the HDB released several positive information about the Punggol BTO projects, which was carried by the media. This could have increased the demand for the BTO flats in Punggol.