LOCATION, AREA, LOCATION
The slower demand for prime area BTO flats amongst buyers may be due to the longer wait instances, stringent criteria, and also the distance of the flats from the city centre, said analysts.
Huttons Asia’s senior director for research Lee Sze Teck said the purchasers were excited over the first two commences of PLH condominiums, which were in Rochor and Kallang Whampoa.
“At the start, buyers experienced the impression that these will be for best, central locations like the city centre as well as the Greater Southern Lake shore, ” said Mr Lee.
“When PLH flats started to appear in further locations from the town centre like Ghim Moh, the initial euphoria over PLH flats died down.
“Buyers appeared to be treating PLH flats every other BTO even in a mature estate. ”
Of all the locations of the BTO flats under the PLH model, only River Peaks I plus II in Rochor, as well as King George’s Heights in Kallang Whampoa, can be considered to stay the city centre, this individual added.
“The other PLH locations, while good, are just simply in a mature estate, ” Mr Lee mentioned, adding that newer resale flats with out PLH restrictions within the same neighbourhoods are usually “more appealing” compared to PLH flats.
How far the flats are from the town centre has a “negative correlation” with apps.
“The additional from the city center, the lower the applications, ” said Mr Lee.
Besides location, buyers can also be put off by the longer wait times that come with prime area BTO flats, said Microsoft Wong Siew Ying, head of analysis and content in PropNex.
“Combined with the 10-year minimum occupation period and certain resale plus leasing restrictions, it will be possible that some candidates could have decided not to make an application for the PLH projects, ” she said.
Applicants may think they are “locked in” for a substantial period of time, which may be at least 15 years, given the particular MOP and building time, Ms Wong added.
This might potentially impact their future property improving plans or accommodate for changes within lifestyle or needs later on in life.
Ms Christine Sun, older vice president associated with research and analytics at OrangeTee plus Tie said several buyers may be deterred by the more strict selling criteria just for PLH flats, and also the clawback of the future product sales proceeds to recover the particular subsidies given.
The pool associated with buyers may have shrunk – eligible and interested buyers might have already made purchases in earlier BTO exercises, she additional.
Potential house applicants and young couples looking for a smaller wait for their houses may have also turned their attention to the other flats that were come in the August BTO exercise, said Mister Mohan Sandrasegeran, senior analyst at 1 Global Group.
“The PLH concept seems to be deterring potential home customers wanting to reap a fast profit in the immediate and hoping to sign up for the ‘millionaire HDB resale club’, ” Mr Mohan additional.