Tag Archives: BTO

Khaw tells HDB to build ahead of demand

Posted on 27 May 2011 | Comments Off on Khaw tells HDB to build ahead of demand

National Development Minister Khaw Boon Wan has told HDB to build ahead of demand during this period of robust demand.

Writing in his ministry’s blog, Mr Khaw said the orders will definitely come, and HDB should call a tender as soon as architectural drawings and tender documents are ready.

Currently, a tender is called only after 70 per cent of orders have been confirmed – hence “Build-to-Order” (BTO) scheme.

The minister said HDB can return to the usual BTO approach after the situation has stabilised.

The move is a bid to help the vast majority of young couples own their own homes as soon as possible so that they can start their families and have babies.

It is a national priority – promoting marriages and births – and Mr Khaw said his ministry must facilitate it to its best ability.

Currently, 70 per cent of new couples get their first homes via HDB’s BTO (Build-to-Order) scheme. The rest purchase their flats in the resale market.

Mr Khaw felt there is scope to do more. He said: “I think we should strive to have the vast majority of new couples start off their first set of homes in HDB, preferably via the BTO route.”

He added that HDB will also ramp up capacity and bring forward projects scheduled for early next year.

HDB confirmed that it will be able to raise the number of BTO units from 22,000 to 25,000 units this year.

Mr Khaw said the new pace of construction will be sustained for next year, as there will be additional demand with the easing of the S$8,000 income ceiling for HDB flats.

While the pace is ramped up, the minister gave the assurance that the quality of finish, workmanship and worksite safety will remain good.

He said the industry need to rise to the challenge, without causing a cost spiral, which will not benefit the buyers.

Mr Khaw added that with more resources and capabilities, he is confident HDB will rise to the new challenge of housing Singaporeans in a first world setting.

He acknowledged that the task is huge and expectations high. He said time is needed to work through some of the constraints, but he has pledged to do his best not to disappoint the public.

Source : Channel NewsAsia – 27 May 2011

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Executive condos return to the spotlight

Posted on 26 May 2011 | Comments Off on Executive condos return to the spotlight

Executive condos (EC), a hybrid of private and public housing, are now returning to the spotlight.

On 26 May, the government launched the 11th EC site since 2010, a plot in Punggol that can house around 720 homes.

Meanwhile, Chip Eng Seng and NTUC Choice Homes recorded rapid first-day sales for their Belysa project in the Pasir Ris / Elias Road area. Of the 315 units, 147, comprising three- and four-bedroom units, have been sold at around S$670 psf each.

“There is a big market for EC units priced between S$600,000 and S$700,000,” said Joseph Tan, CB Richard Ellis (CBRE) Executive Director (Residential), adding that the price gap between 99-year leasehold suburban private condos and EC projects has widened once again.

Mr. Tan noted that the typical price gap was around 25 to 30 percent when ECs were launched in 1996. This gap narrowed over the years due to weak suburban condo prices, which resulted in dwindling demand for ECs.

However, the sharp recovery of 99-year mass market condo prices has reinforced the demand for ECs.

“Today, 99-year mass market condos which are not near an MRT station could be priced around S$900 to S$950 psf on average, while an EC project in a similar location would be around S$650 to S$700 psf,” Mr. Tan said.

Most analysts expect the monthly household income ceiling for ECs to be increased from S$10,000 to S$12,000 or above, assuming the government proceeds to raise the ceiling for those purchasing new Build-To-Order (BTO) flats from the HDB from S$8,000 to S$10,000, pending a review.

“That will create more realistically-priced alternatives for the sandwich class and siphon off some demand from 99-year mass-market private condos,” said Mr Tan.

Many real estate analysts anticipate top bids for the recent EC site at Punggol Way / Punggol Field to be within the S$300 psf to S$350 psf ppr range and the average selling price to be approximately S$700 psf to S$750 psf.

Ong Teck Hui, Credo Real Estate Executive Director, noted that some EC developers may be more careful about bidding for the site if they are concerned that the income ceiling for EC buyers will be unchanged while that for HDB BTO flats will increase. Consequently, more people will qualify for HDB flats and this will lower demand for ECs.

Source : PropertyGuru – 26 May 2011

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