HDB to launch 2 BTO projects under prime location model

Two upcoming Build-To-Order (BTO) projects in the mature estates of Bukit Merah and Queenstown will fall under the prime location public housing (PLH) model, the Housing Board said yesterday.

The two BTO projects are among the five sites that will be launched for sale this month.

In Bukit Merah, around 1,660 three-room and four-room units will be offered on a site bounded by Henderson, Tiong Bahru and Lower Delta roads.

Future residents will be served by both Redhill and Tiong Bahru MRT stations.

In Queenstown, around 860 three-room and four-room flats will be launched on a site in Ghim Moh Road, next to Buona Vista MRT station.

BTO projects that fall under the PLH model come with stricter buying and selling conditions, including a 10-year minimum occupation period and a subsidy clawback at the first resale transaction.

Around 4,500 BTO units will be launched this month in the mature estates of Bukit Merah, Queenstown, Toa Payoh, and the non-mature estates of Jurong West and Yishun, National Development Minister Desmond Lee said in a Facebook post yesterday.

There were two BTO projects to be launched in Bukit Merah this month but one has been shifted to the August sales exercise, said Mr Lee.

"More time is needed to review the project and (the shift is) to better spread out the location of projects in mature and non-mature estates at each launch," he added.

There will also be a concurrent Sale of Balance Flats (SBF) exercise, which offers completed and under construction flats across various towns islandwide.

HDB is on track to launch up to 23,000 BTO flats this year.

Mr Lee said a sizeable number of units in the May BTO sales exercise will be in mature estates to meet the strong demand.

"They will better cater for young families who wish to live near their parents already staying in existing mature estates, for better mutual care and support."

Mr Lee noted that application rates for BTO projects in mature estates are expected to remain high, and encouraged buyers to consider applying for flats in non-mature estates - such as Jurong West and Yishun - to maximise their chances of getting a flat.

Two BTO projects in Rochor and Kallang/Whampoa have been launched under the PLH model since it was announced in October last year.

In his post yesterday, Mr Lee said about 80 per cent of successful applicants who were invited to select flats at the first PLH project in Rochor have gone on to book their flats - higher than the average of 60 per cent for most BTO projects.

Huttons Asia senior director of research Lee Sze Teck said the Bukit Merah and Queenstown areas have seen multiple HDB resale flats changing hands for at least $1 million.

A five-room 113 sq m HDB flat at Block 96A Henderson Road - a stone's throw away from the upcoming Bukit Merah BTO site - was sold for an all-time record of $1.4 million this month.

"Planning two PLH projects in Bukit Merah and Queenstown is sending a signal to the market that there will be affordable BTO flats and perhaps curb the possibility of more record-breaking HDB resale flat prices," said Mr Lee Sze Teck.

Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said the popularity of the previous two PLH projects showed there is demand for such units, and they may serve as a good alternative for the sandwiched class, as prices of private condominiums are still climbing.

"Offering these PLH projects on a regular basis may help close the affordability gap among Singaporeans," she added.

"Going by the current trend, PLH projects may become a norm and more of such flats could be released in every launch or at least twice a year."