Friday, October 16, 2009

High demand for Sengkang, Jurong BTO units on first day of sale

Two Built-To-Order (BTO) housing projects were launched on Friday, offering 1,200 flats in Sengkang and Jurong West.

On the first day of sale, the Housing and Development Board (HDB) received 501 applications for the units.

Located near two LRT stations, it is no wonder flat buyers are drawn to the 495 flats available at Fernvale Palms in Sengkang.

An interested buyer said: “By the time the flat is ready (in three or four years), the place should be more or less established. At the same time, it allows me and my future wife (time) to save up after our marriage.

“I think it’s cheaper than the resale flats because you don’t have to pay the COV. And resale flats tend to be (more expensive) because the sellers tend to sell at high prices.”

Prices range from S$129,000 to S$163,000 for a three-room flat, and S$214,000 to S$262,000 for a four-room flat in Sengkang. A five-room flat costs between S$282,000 and S$340,000.

Over in Jurong West, home buyers can choose from 705 units at Boon Lay Meadows. Prices range from S$86,000 to S$103,000 for a two-room flat, and S$138,000 to S$173,000 for a three-room unit. A four-room flat is priced between S$223,000 and S$266,000.

Industry players said they expect high demand for both projects, with Jurong West being the more popular of the two.

Mohd Ismail, chief executive officer at PropNex Realty said: “These 1,200 BTO standard flats that have been launched on Friday is very welcoming news because this will give certainty in terms of owning the property come next three to four years.

“Unlike the other completed flats, BTO flats have got better opportunities for someone to be successful… even looking at the pricing, I think it is attractively priced.

“Jurong West, a relatively mature estate, will again have strong demand, especially from a lot of new families who want to stay closer to their parents. Probably, we can expect a stronger demand from Jurong West than Sengkang.”

HDB said that most households will not need to use cash to meet their monthly mortgage payments based on the income of flat applicants in the first half of this year.

First-time buyers of these two new projects are expected to use between 18 and 24 per cent of their monthly household income to meet their monthly loan commitments.

The BTO flats are part of the supply of 5,000 new flats announced by National Development Minister Mah Bow Tan earlier this month.

Applications for these two BTO projects end on October 29.

Source: Channel News Asia, 16 Oct 2009

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