HDB’s continued release of BTO (Built-To-Order) flats is a good sign in a market where HDB flats are generally in demand.
This was an observation made by PropNex CEO Mohd Ismail on HDB’s launch of two new BTO housing projects in Punggol and Sengkang.
“The two new launches, totaling some 1,587 Premium flats, are timely for many younger couples who are not able to afford the resale flats,” he said. Resale flats are traditionally more costly, especially with the islandwide median COV (Cash Over Valuation) standing at a whopping $20,000. Renovations and furnishings usually add to these costs too.
However, the fact that more projects are being launched in the Punggol and Sengkang areas may result in a seemingly lower demand than earlier BTOs.
Furthermore, constructions costs, which have risen by easily 50% over the last two years, may have driven up the costs of these BTOs: a 5-room flat costs over $300,000. Mohd Ismail thus cautions buyers to exercise prudence in choosing their new flat given these costs.
All in all, even with HDB’s new policies in place, Mohd Ismail expects the projects to be at least two times over-subscribed.