New Record Supply in Yesterday's Launch of BTO flats

Launch of new flats marks record supply

The Housing Board has launched almost 6,500 new Build-To- Order (BTO) flats in five towns, making this another record year in terms of public housing supply.

The offerings announced yesterday are in three mature estates - Ghim Moh, Toa Payoh and Bedok - and the two newer estates of Choa Chu Kang and Sengkang.

With the rollout of 6,463 new units, the total number of BTO flats made available this year will reach 27,084 - the highest since the system was introduced in 2002.

Together with another 7,153 unsold "balance flats" that were relaunched for sale, this year's total supply comes to 34,237 flats.

Prices for a three-room flat start from as low as $146,000 - excluding housing grants - in Choa Chu Kang.

Yesterday, the HDB highlighted the affordability of these and other flats on offer.

It said that a typical applicant, who has a monthly household income of $4,000 and qualifies for a $15,000 housing grant, will need pay just $11 in monthly cash instalment for a $275,000 four-room flat at Keat Hong Mirage in Choa Chu Kang - after deductions from the Central Provident Fund.

National Development Minister Khaw Boon Wan said in Parliament last week that new flats - the bulk of which are reserved for first-time applicants - were still affordable for them.

He noted that the prices for new HDB flats had risen by 12 per cent, compared to the 34 per cent rise in the HDB resale price index since 2009.

Buyers will have to pay more, however, for flats in mature estates, with the cost of a four- room flat in Ghim Moh ranging from $450,000 to $594,000. A five-room unit in Bedok costs between $471,000 and $537,000.

Still, property analysts said the latest prices in this launch showed the HDB's consistency in keeping prices relatively stable. ERA Realty key executive officer Eugene Lim said the new flats are priced at a considerable discount, given the upbeat property market which has seen some resale units fetching up to a million dollars.

He said a resale four-room flat in Ghim Moh, which is about a decade old, can fetch $600,000 to $670,000 now.

"Although buyers have to wait about three years for their flats to be completed, they will get a brand new flat and skip paying a cash premium, which has to be paid upfront," he said.

Data collated from various agencies showed that these premiums - known as cash-over-valuation or COV - have now climbed to a median of $33,000 nationwide, up from $30,000 in the third quarter of this year.

The HDB launched 25,000 BTO flats last year, and plans to offer at least 20,000 more next year. 

Applications close next Tuesday.

Source: The Straits Times –22 November 2012