Demand outstrips supply for units

SINGAPORE: New flats in the mature town of Ang Mo Kio drew strong demand from potential homebuyers in the latest Build-To-Order (BTO) sales exercise, which closes on Monday.

It is the first time in three years that new BTO flats have been offered in the mature towns of Ang Mo Kio and Bedok. As analysts predicted, demand has far outstripped supply. Upcoming executive condo include Treasure Crest and Northwave EC while existing ones include The Terrace EC, Brownstone EC, The Visionaire EC, Parc Life EC , Waterwoods EC, Signature at Yishun, Skypark Residences, Wandervale EC, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.

As at 5pm on Monday, demand for four-room units in Ang Mo Kio Court was tops, with 2,107 applicants for 234 units. This means there are nine applicants per flat.

Five-room and three-generation flats in the project also saw keen interest, with about eight applicants per flat.

Demand was driven largely by second-timers.

“Especially for the second-timers, the people who have already built up a lot of equity in their current flats – when they upgrade, they find the upgrading premium is very affordable. The demand from upgraders is still pretty strong,” said Century 21 Singapore’s CEO, Ku Swee Yong.

“We see that families who bought something 15, 20 years ago, now with children growing up, they are now upgrading from a three-room to a four- or five-room (flat). And the other positive about this Ang Mo Kio location (is the fact that) there are many brand name schools near this location, especially if you were to include Bishan estate,” he added.

Four-room flats at Bedok North Woods were also oversubscribed, with 1,580 applicants vying for 247 units.

Demand for new flats was far less in the non-mature towns of Bukit Panjang and Sembawang.

While these flats may come with smaller price-tags, that will not necessarily drive demand, according to an industry player.

“The key thing is to sell the unique selling proposition and the upside of the non-mature estates in time to come. People need to realise this – today’s non-mature estates will not necessarily be non-mature for long. And therefore, entering at a lower price will have a greater upside in terms of their investment,” said PropNex CEO Mohamed Ismail.

This exercise also saw about 5,100 balance flats on offer, the first time since the November 2015 exercise. An analyst said it is not surprising to see such strong demand for these flats, particularly those in the mature estates. One big draw is the shorter wait time for keys to these flats.

“Some of these flats are in very good locations, (on a) good level, (with) good facings, nice numbers – and you’ll see for such particular flats, sometimes one in the whole estate,” said Mr Chris Koh, director of Chris International.

Among the most oversubscribed in this exercise are two five-room flats located near an MRT station in the Kallang-Whampoa area, with 118 applicants.

Four-room units in Tampines had close to 40 applicants per flat, while five-room units in Queenstown had about 30 applicants per flat.

A single four-room unit in The Pinnacle @ Duxton drew 16 applications.

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