Low subscription rate for two-room units in BTO projects

As of 5pm Tuesday, the Housing and Development Board has received only 82 applications for the 230 two-room flat units from the Build-To-Order (BTO) projects announced in May.

For example, at Spring Haven in Jurong West, there were 45 applications for 90 two-room units.

Meanwhile, the three-room and four-room units were oversubscribed.

The most popular out of the eight projects on offer are the three-room and four-room units in Hougang where there were more than three applicants for each unit.

HDB has received 4,172 applications for the 4,900 units offered in the May 2013 BTO Exercise.

Analysts Channel NewsAsia spoke with said the government had stopped building two-room flats for at least 10 to 20 years.

During the last two years, it resumed supply to provide for the low-income households.

Next month, singles above the age of 35 and earn up to S$5,000 a month will be allowed to buy new two-room BTO flats.

Analysts said this will prevent the oversupply of two-room flats but whether such flats will be popular with singles is still unknown.

Meanwhile, flats under the Sale of Balance Flats (SBF) exercise have seen stronger demand.

A total of 3,100 units are on offer, including those in mature estates like Bukit Merah and Queenstown.

As of 5pm on Tuesday, there were about five applicants for each flat on offer.

The two units at the iconic Pinnacle@Duxton drew the most number of applications.

There were 330 applicants vying for the unit that is equivalent to a five-room flat while 152 applications have been received for the other unit which is similar to a four-room unit.

The deadline for applications under the HDB’s BTO and SBF exercises for May will end on June 5.

Source : Channel NewsAsia – 4 June 2013

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