Keen interest for Bidadari in bumper HDB launch
SINGAPORE — Topping out at over half- a-million dollars, the hotly-anticipated Bidadari project drew keen interest on day one of a bumper launch of over 12,000 new flats by the Housing and Development Board (HDB), and property analysts expect high demand for the project to continue, amid a tepid year for the property market.
As of 5pm today (Nov 17), five-room flats, priced from S$544,000, were already oversubscribed with 259 applicants vying for 151 units, while there were 399 applications for the 1,229 Bidadari four-room flats — a subscription rate of 0.3 per cent, which is slightly higher than that of similar flats in other estates.
The latest exercise is the largest one by the HDB yet, combining two launches originally scheduled for September and November, and will last 10 days instead of the usual seven.
It comprises 7,061 new Build-to-Order (BTO) flats across seven projects in Bukit Batok, Choa Chu Kang, Hougang, Punggol and Sengkang, as well as 2,139 flats in the first three projects in Bidadari estate. Prices for four-room and five-room flats in Bidadari without grants start from S$433,000 and S$544,000 respectively, compared to the S$252,000 and S$320,000 for flats of similar size in the other towns.
The remaining 5,350 flats are units that were left unsold from previous sales launches, spread across 25 towns including Ang Mo Kio, Tampines and Jurong East. Prices for four-room flats start from S$227,000 and S$315,000 for five-room flats.
(Click to Enlarge)
This month’s launch brings the total BTO supply this year to 15,100 flats, in line with the Government’s target of 15,000 units for the year. Including balance flats, the HDB has offered a total of 25,837 flats for sale this year.
Property analysts TODAY spoke to had expected the higher prices for the Bidadari projects, adding that the premiums were reasonable given its central location in a mature estate.
Mr Chris Koh, director of Chris International, said the Bidadari prices are roughly 20 per cent higher than flats in outlying towns like Punggol, which is still palatable because of its location and convenience to the city.
Based on his own calculations, ERA’s key executive officer Eugene Lim said a five-room Bidadari flat is expected to cost a maximum of S$625,000, which is still lower than prices of nearby flats in the resale market that has gone as high as S$855,000.
“Even though there are more than 12,000 flats to choose from, Bidadari is likely to steal the show as there has been tremendous pent-up demand for these flats. Further, the “kiasu” mentality amongst flat buyers would spur them to be first-movers for fear that later launches may be more pricey once the estate starts to take shape,” he added.
Propnex Realty chief executive officer Ismail Gafoor noted that given the price, competition will mainly be among upgraders and some higher-income first-timers.
While there have been concerns of a supply glut in the market, analysts were still expecting healthy overall demand because of policies kicking in from this mega launch onwards, which widen the pool of buyers.
These policies, which were first announced during the National Day Rally, include the raising of income ceilings to S$12,000 for households and S$6,000 for singles, as well as the enhanced Special CPF Housing Grant (SHG). Elderly citizens aged 55 and above will also be able to choose the length of their lease under the new 2-Room Flexi Scheme, which will be rolled out for the first time under this latest exercise.
“I would expect good subscription rates for November’s launch, given that there are new housing policies that will widen the available demand pool and the enhancement of the SHG will also make BTO flats even more affordable for buyer who are eligible,” said Mr Wong Xian Yang, OrangeTee’s manager of research and consultancy.
Noting that this is an “unprecedented launch”, Mr Ismail said he is expecting the 1,443 units across 14 mature estates under the SBF exercise to be heavily subscribed. “It is predicted that estates like Clementi and Bukit Merah to have double digit subscription rates,” he added.
Commenting on a Facebook post on his visit to HDB Hub today, Minister for National Development Lawrence Wong said he met several interested buyers including seniors looking to right-size to smaller unit and young couples. “It was just day 1, but the sales area was already abuzz with many home-buyers,” he said, adding that there is no rush with the application period extended.
Interested buyers have until next Thursday to submit their applications online on the HDB’s website.
