{"id":122878,"date":"2021-10-29T02:09:17","date_gmt":"2021-10-28T19:09:17","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-prime-area-housing-model-may-boost-demand-for-flats-in-nearby-areas\/"},"modified":"2021-10-29T10:24:19","modified_gmt":"2021-10-29T03:24:19","slug":"new-prime-area-housing-model-may-boost-demand-for-flats-in-nearby-areas","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-prime-area-housing-model-may-boost-demand-for-flats-in-nearby-areas\/","title":{"rendered":"New prime area housing model may boost demand for flats in nearby areas"},"content":{"rendered":"


\nFuture HDB flats launched under the PLH model have tighter rules\u00a0like an extended MOP period of 10 years, which may push potential buyers towards flats in city-fringe areas that are not subject to such restrictions.
\nAnalysts believe the stricter resale conditions for flats under the new prime location public housing (PLH) model would drive demand for flats in nearby areas not subject to similar restrictions, reported Channel News Asia (CNA).
\nThis comes as authorities on Wednesday (27 October) announced that buyers of future Build-to-Order (BTO) flats located in prime areas would have to deal with a longer Minimum Occupation Period (MOP) of 10 years as well as restrictions on renting out the entire flat even after achieving MOP.
\nThey will also have to face a subsidy clawback after the sale of the flat.
\nThese conditions will apply to certain Housing and Development Board (HDB) projects within central locations like the city centre and surrounding areas, including the Greater Southern Waterfront.
\nAnalysts described the move as a step in the right direction in curbing the \u201clottery effect\u201d and promoting inclusiveness in prime areas.
\nHowever, they pointed that the tighter rules may have the unintended impact of fuelling demand for nearby flats that are not subject to these regulations.
\n\u201cThese kinds of older flats or previous launches are not affected by this \u2013 owners can still sell them in five years, sublet it out. Definitely for those looking for future rental returns or capital appreciation gains, they will probably look for these homes,\u201d said Dr Lee Nai Jia, Deputy Director of the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore, as quoted by CNA.
\n\u201cThey will also know that in future, there will not be any such products in the market, especially in the city centre area. So I think definitely demand and pricing will see some spike.\u201d
\nHowever, buyers should be mindful of the length of the remaining leases on these older flats, he said.
\nNicholas Mak, Head of Research and Consultancy at ERA Realty, agreed that demand is likely to spill over to surrounding areas but does not expect to see a significant increase in prices.
\n\u201cThe overall stock of HDB flats in that location will increase with the completion of the PLH flats. Based on economic theory, an increase in supply can moderate the rise in prices,\u201d he said as quoted by CNA.
\n\u201cHence, any increase in the resale prices of the non-PLH flats will still depend on other major factors, such as the state of the economy, household income, market conditions and government intervention.\u201d
\nBuyers may also turn to mature estates that are not located within prime areas, said analysts.\u00a0
\nAnalysts noted that while the doubling of the MOP to 10 years may weed out speculative buyers, this could also cause inconvenience to buyers whose circumstances change over time, like families who have children and require more space.
\nHowever, National Development Minister Desmond Lee explained that appeals by those genuinely facing extenuating circumstances would be subject to review on a case-by-case basis.
\nMak noted that the extended MOP might result in less liquidity within the market as more buyers are locked into their home acquisition for a longer period.
\nHDB upgraders\u2019 demand for private homes may also slow if the proportion of PLH flats out of the total BTO supply increases over time.
\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…New prime area housing model may boost demand for flats in nearby areas<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Future HDB flats launched under the PLH model have tighter rules\u00a0like an extended MOP period...<\/p>\n","protected":false},"author":1,"featured_media":122879,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-122878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/10\/singapore-prime-district.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vXU","jetpack-related-posts":[{"id":122853,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/first-bto-project-under-new-prime-housing-model-to-be-built-in-rochor\/","url_meta":{"origin":122878,"position":0},"title":"First BTO project under new prime housing model to be built in Rochor","date":"October 27, 2021","format":false,"excerpt":"\r The Rochor BTO project will have 960 units of\u00a0three-room and four-room flats, and 40 units of two-room rental flats. Source: HDB The first project under the new prime location public housing (PLH) model will be built at Rochor and launched at next month\u2019s Build-to-Order (BTO) exercise. Situated along Weld\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/10\/rochor-bto-plh.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":123703,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-flats-remain-attractive-as-investment-despite-restrictive-rules-under-plh-model\/","url_meta":{"origin":122878,"position":1},"title":"HDB flats remain attractive as investment despite restrictive rules under PLH model","date":"December 9, 2021","format":false,"excerpt":"\r Over the past 20 years, prices of resale HDB flats increased by 0.82%\u00a0quarter-on-quarter on average, or an accumulated growth of almost 70%. Aside from providing a roof over people\u2019s heads, housing is also considered as one of the biggest assets for over 90% of Singaporean households. In an article\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/HDB-EIP.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":122935,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/exclusion-of-singles-from-buying-hdb-flats-in-prime-areas-not-a-step-backwards\/","url_meta":{"origin":122878,"position":2},"title":"Exclusion of singles from buying HDB flats in prime areas not a step backwards","date":"November 1, 2021","format":false,"excerpt":"\r For now, the current restrictions on PLH flats\u00a0are meant to prioritise larger households that might require more space, with adjustments\u00a0to be made after\u00a0the impact of the measures are assessed. The decision to exclude singles from the group of buyers allowed to purchase flats under the latest prime location public\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/plh-model.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":123358,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/analysts-divided-on-whether-6-subsidy-clawback-for-rochor-flats-is-adequate\/","url_meta":{"origin":122878,"position":3},"title":"Analysts divided on whether 6% subsidy clawback for Rochor flats is adequate","date":"November 22, 2021","format":false,"excerpt":"\r When\u00a0River Peaks I & II flats go onto the resale market for the first time, future residents of the Nov 2021 BTO launch will have to pay a 6% of the resale price or the unit\u2019s valuation, whichever is higher. Source: HDB Property analysts are divided on whether the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/NOV-2021-HDB-BTO-ROCHOR-RIVER-PEAKS.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":124267,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gcb-sales-volume-to-ease-in-2022-increase-in-property-auction-listings-and-more\/","url_meta":{"origin":122878,"position":4},"title":"GCB sales volume to ease in 2022, increase in property auction listings and more","date":"January 17, 2022","format":false,"excerpt":"\r 11th January\u00a0to 17th January After a robust performance in 2021, the Good Class Bungalow (GCB) market is expected to see a drop in sales volume this year. On the other hand, the property auction market is forecasted to register a hike in listings, although the success rate is expected\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/01\/singapore-landscape-1.jpg?fit=770%2C433&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":123369,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/strong-demand-for-four-room-flats-at-rochor-bto-projects-under-prime-housing-model\/","url_meta":{"origin":122878,"position":5},"title":"Strong demand for four-room flats at Rochor BTO projects under prime housing model","date":"November 22, 2021","format":false,"excerpt":"\r As of 2pm on 22 November, the subscription rate for 4-room flats stood at 4.1 for first-timers and 80.5 for second-timers, and 8.0 for the overall rate. Source: HDB Demand for four-room flats in the first Build-To-Order (BTO) projects under a new prime location public housing (PLH) model have\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/hdb-flats-in-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/122878"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=122878"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/122878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/122879"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=122878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=122878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=122878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}