PropNex CEO Mohamed Ismail forecasts a high subscription rate of at least five times for the units launched by HDB in their two new Build-To-Order (BTO) projects: Buangkok Vale and Limbang Green.
“Firstly,” he explains, “both Hougang and Choa Chu Kang, where the BTOs are located, are matured estates with all the amenities in place.
“Secondly, the 3-room and 4-room flats for both BTOs are about 30% and 20% cheaper respectively for similar flats in their areas, based on 3Q09 results from HDB. Finally, one may notice that the flats offered are confined to the smaller flats, with their greater affordability catering to a wider consumer group.
Mr Ismail also points out that 646 of the 1,291, or half of the flats offered, are 4-room flats, which have traditionally been the most popular flat choice amongst HDB dwellers. That is also the reason why he feels that Buangkok Green may be the more popular choice of balloters, as that project is offering 458 4-room flats.
However, despite their low cost, Mr Ismail does have some reservations about the 276 studio apartments offered at Limbang Green.
“They may not hit the 5x rate of subscription,” he ventures, “as they do not really appeal to families. The size is too constrictive, especially when they would be locked into this property for the next eight years or so.”
Mr Ismail also does not feel that the new BTO projects will have much of an impact on current resale flat prices, mainly due to the waiting period of about three to four years for the flats. “For those who cannot wait, they will still have to turn to the resale market,” he points out.
In conclusion, Mr Ismail commends HDB’s proactive stance in ramping up the supply of BTO flats, with launches practically every month since June 2009, save September.
“They (HDB) have been most conscientious in recognizing the demand and taking concrete steps to meet it,” he says.
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726