Tag Archives: BTO

BTO launch draws more applicants than units available

Posted on 31 May 2011 | Comments Off on BTO launch draws more applicants than units available

In only days, the biggest Build-to-Order (BTO) launch by the authorities has attracted twice as many applicants as the number of units available, and National Development Minister Khaw Boon Wan is not surprised.

The application rate is within expectation, Mr Khaw wrote yesterday on his housing blog. Of the 4,000 units across six projects, the ones in Tampines are the most popular, he added, with high application rates for the four- and five-room flats – about 3.5 and four applications per unit respectively.

More are expected to apply before the deadline on Thursday.

At the Housing and Development Board (HDB) Hub yesterday, first-time applicant Lee Wee Ming said: “I’m getting a Tampines flat, which is near my mother-in-law’s place .. This is a pro-family move by the Government to have … BTOs in mature estates.”

Other flat buyers were concerned about the outcome of the income ceiling review for new flats.

Four-time BTO applicant Derek Ong said: “With the increased income ceiling, more people are going to be eligible for BTOs.”

Meanwhile, analysts estimate that cash-over-valuation will slide from the current average of S$21,000 to between S$15,000 and S$10,000 as a result of the move to build more new flats coupled with the Government’s recent cooling measures for the property market.

SLP International head of research and consultancy Nicholas Mak said: “It would draw some of the demand from the resale flat market into the BTO application list.”

Source : Today – 31 May 2011

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Move to build more HDB flats may benefit construction industry

Posted on 30 May 2011 | Comments Off on Move to build more HDB flats may benefit construction industry

Analysts said the move by the Ministry of National Development to build more HDB flats may give the local construction industry a fresh boost.

The majority of first time HDB home buyers can rejoice with the MND’s decision to develop more build-to-order (BTO) flats this year.

And with the decision to address rental flat shortages, industry observers said the planned supply changes would be positive for the construction industry as developers bid for more contracts.

However, the plan for more homes in Singapore also comes with challenges like rising costs in the industry.

“If you suddenly have an increase base you need more of these materials. These stockpiles may not be adequate so you’ll have to import more,” said Mr Vashdev Khialani, engineer at C&V Consultants LLP.

“Prices of construction will generally go up across the board, whether it is HDB or private, residential, commercial or industrial.”

And the need for more construction workers will only add to construction price woes.

“Foreign worker levies are on the uptrend, so construction companies when they bid they have to be more aware. They’ve got to price their costs very carefully, and see if they can retain an attractive margin,” said investment analyst at SIAS Research, Liu Jinshu.

Industry observers said that aside from construction, engineering businesses will also benefit from more HDB supply as a chain effect.

Analysts added that a lift in income ceiling for first time buyers could further prompt HDB to build flats ahead of demand.

“The ceiling is S$8,000 for first time flat buyers. So if they do lift up this ceiling, then it would be an astute move to build ahead of demand, to smooth any impact on the raising of the income ceiling as well,” said Mr Liu.

Going forward, analysts said a likely rise in income ceiling may shift preferences for private homes in the mass market condo segment to the HDB market.

Source : Channel NewsAsia – 30 May 2011

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