BTO, or Built-to-Order, flats are generally supposed to be the cheapest subsidised flats offered to Singaporeans by HDB.
“In fact, such flats should be priced about 20% cheaper than resale flats in the same area,” opines PropNex CEO. “Otherwise, buyers may as well go for a resale flat where they do not have to wait to move in and can enjoy grants of up to $70,000.”
That is why he feels that demand for the latest offering from HDB, Punggol Arcadia, may meet with some lukewarm response, especially for the 5-room flats where the median price is only a few thousand dollars below that of Punggol resale flats. Not only that, but the PSF (per square foot) price for Punggol Arcadia’s 5-room flats at about $348 seems to be higher than the 4-room flat price of about $320.
Despite the attractive location, there is a gloomy economy that is also facing greater retrenchment. However, Ismail notes that these prices could be indicative of the higher construction costs these days.
“Possibly, we may see greater demand for the 3-room flats for this BTO,” Ismail concludes, “as Punggol has no 3-room resale flats available.”
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726