{"id":121074,"date":"2021-07-26T03:01:56","date_gmt":"2021-07-25T20:01:56","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/strong-demand-for-new-flats-in-mature-estates-may-boost-resale-prices\/"},"modified":"2021-07-26T12:02:45","modified_gmt":"2021-07-26T05:02:45","slug":"strong-demand-for-new-flats-in-mature-estates-may-boost-resale-prices","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/strong-demand-for-new-flats-in-mature-estates-may-boost-resale-prices\/","title":{"rendered":"Strong demand for new flats in mature estates may boost resale prices"},"content":{"rendered":"


\nStrong demand for new flats in mature estates may boost resale pricesHowever, the popularity of public housing within mature estates is apparent for BTO flats only. The top five neighbourhoods for resale flats were a mixture of mature and non-mature estates.
\nSome property experts believe the strong demand for new public housing flats within mature estates could lead to rising resale prices in such areas, reported TODAY.
\nThe Housing and Development Board (HDB) on Sunday (25 July) revealed that the number of new Build-to-Order (BTO) projects in mature estates have increased by almost 50%, from nine in 2017 to 13 in 2020.
\nConversely, the proportion of new BTO flats within matures towns also grew from 44% to 55% over the same period.
\nThis is due to the strong demand for housing within older residential estates such as Ang Mo Kio, Clementi, Queenstown, Bishan, Bukit Merah, Tampines and Toa Payoh.
\nAnd while BTO projects are typically oversubscribed, HDB noted that the application rates for projects located in mature estates are not only higher\u2014they have also increased more than those within non-mature estates.
\nIn fact, BTO projects in mature estates saw application rates jump to 6.7 times in 2020 from 2.8 times in 2017. In non-mature estates, application rates climbed to 4.8 times from 2.1 over the same period.
\nDespite the Government\u2019s efforts to cater to that demand by launching more new projects within mature estates, SRI Managing Partner Ken Low expects future BTO launches within such areas to be hotly contested.
\n\u201cThose who are unable to secure a unit will spill over to resale HDB flats in these areas or resale or new private residential with support from parents,\u201d he said as quoted by TODAY.
\nHe noted that this trend has pushed up HDB resale prices, particularly those within older residential estates, and led to a hike in the valuation of such areas.
\nData from the HDB showed that resale prices increased 3% in Q2 2021, or its fifth consecutive quarterly hike.
\n\u201cBTO prices will inch up higher in line with the increased valuation of the surrounding resale flats, but they will still remain as the most attractive option for these buyers,\u201d said Low.
\nProperty experts are generally in agreement that it would be very challenging for the Government to meet the housing demand in mature towns, in the short term at least.
\nWhile redeveloping older housing estates via the Selective En bloc Redevelopment Scheme (SERS) can help meet the demand for housing, there is a limit on how much land could be recycled under this programme.
\nERA Realty Head of Research and Consultancy Nicholas Mak noted that this scheme also opens up the issue of relocating existing residents.
\nHuttons Asia Research Director Lee Sze Teck, however, said that the popularity of public housing within mature estates appears to be apparent for BTO flats only.
\nHis research indicated that the picture is more mixed when it comes to HDB resale transactions.
\nNotably, three non-mature estates\u2014Punggol, Sengkang and Woodlands\u2014were among the top five housing estates for resale transactions. The other two\u2014Tampines and Bedok\u2014are mature estates.
\nLee attributed the popularity of BTO projects in mature estates to the growing number of resale homes transacting at more than a million dollars.
\n\u201cIt could be why it got people gravitating, hoping that theirs could be the next million dollar flat,\u201d he said as quoted by TODAY.
\nDemand to non-mature estates could also be driven by moving popular schools to these areas, said Lee.
\nMak also suggested widening the price difference between BTO projects at non-mature and mature estates.
\nDoing so, however, would mean taxpayers monies are spent on higher subsidies. Moreover, the public would complain of the high prices within mature estates, he said.
\n\u201cThere will always be a price to be paid for any of these methods,\u201d said Mak as quoted by TODAY.
\nLow said the release by the Government of concrete development plans for non-mature estates may help boost buyers\u2019 confidence in the resale potential of such areas. This could eventually encourage them to forego their desire of acquiring homes in mature estates.
\n\u201cThe current generation of buyers are often knowledge-seeking and well informed. They tend to look into potential areas even though they may yet to be developed,\u201d he said.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Strong demand for new flats in mature estates may boost resale prices<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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A total of 4,989 Build-To-Order (BTO) flats across seven projects in Jurong East, Hougang, Queenstown, Kallang Whampoa and Tampines were launched for sale by the Housing and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/08\/AUGUST-BTO-2021.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":121069,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/number-of-new-bto-projects-in-mature-estates-increased-by-almost-50-says-hdb\/","url_meta":{"origin":121074,"position":2},"title":"Number of new BTO projects in mature estates increased by almost 50%, says HDB","date":"July 26, 2021","format":false,"excerpt":"\r In the last four years, almost 25,600 BTO flats were offered within older residential areas such as Queenstown, Bukit Merah, Tampines, Toa Payoh, Ang Mo Kio, Bishan and Clementi. 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