What could deter people from applying for Singapore’s latest BTO exercise?

The flats in Bukit Merah and Geylang could see strong demand but applicants will have to wait for longer.

Singapore’s Housing and Development Board (HDB) has offered 3,879 flats for sale under its May 2021 Build-to-Order (BTO) exercise, comprising 1,557 flats in mature estates in Bukit Merah and Geylang, as well as 2,322 flats in non-mature estates in Tengah and Woodlands. This latest BTO offering is about 3.7% higher than the 3,740 new HDB flats placed for sale in the February 2021 BTO exercise, which was oversubscribed by about 4.6 times with a total of 17,091 applicants. 

For the May 2021 BTO exercise, PropNex expects flats in Bukit Merah and Geylang will likely see overwhelming interest – being in the more desirable prime city fringe locations and relatively close to an MRT station. However, PropNex CEO Ismail Gafoor notes that the estimated waiting time for these two BTO projects is also the longest of the four BTO offerings – Telok Blangah Beacon at 64 months and MacPherson Weave at 52 months, compared with 46 months for both Garden Bloom @ Tengah and Woodgrove Ascent.

“The relatively longer wait for the Bukit Merah and Geylang BTO completions may potentially dissuade some people from applying for them, but given their strong location attributes, we think demand will still be very strong,” he adds.

Here’s more from PropNex:

Bukit Merah:

Of the four projects in this BTO exercise, Telok Blangah Beacon in Bukit Merah has the fewest number of units on offer, at just 175 flats. The project is also about 335m to 400m from the Telok Blangah MRT station. Given the limited number of units and proximity to the MRT station, coupled with the fact that this is the first BTO launch in the popular Bukit Merah town since July 2013, buying interest will be very keen.

The BTO site is also near the future Greater Southern Waterfront (GSW) development, earmarked as one of the major gateways for live, work and play. We believe this BTO project could potentially benefit from the upcoming GSW and would be highly sought-after by those who want to live in a prime location amid parks and greenery (such as The Southern Ridges and Labrador Nature Reserve). In addition, some families may opt for this project as they believe the flats may enjoy better capital appreciation in the years to come, as the GSW development takes shape.

Geylang:

We also expect the new flats in MacPherson Weave in the Geylang estate to see healthy demand owing to the excellent transport connectivity. It is within walking distance to the MacPherson MRT station (estimated distance of 70 to 80m) and is also next to the Paya Lebar Road, a major road that connects to the Pan Island Expressway, offering easy access to the rest of Singapore.

While there isn’t a wealth of amenities in the immediate surrounding areas, the Paya Lebar commercial hub – with the PLQ Mall, SingPost Centre, and Paya Lebar Square mall - is just one MRT stop away. It is also near various employment nodes such as the Paya Lebar regional centre, as well as business and industrial estates in Tai Seng and Macpherson.

Tengah and Woodlands:

We think Garden Bloom @ Tengah and Woodgrove Ascent will likely see less competition compared to the projects in Bukit Merah and Geylang. While Tengah – a new town still undergoing development - has little to offer in terms of amenities now, it presents exciting transformation ahead as it is envisioned as a car-free town with lots of greenery and wellness features. Meanwhile, Woodgrove Ascent, located about 620 to 630m from the Woodlands MRT station, should garner interest as it is near the Woodlands Regional Centre, poised to be the largest economic hub in northern Singapore.