{"id":127407,"date":"2022-06-28T03:47:26","date_gmt":"2022-06-27T20:47:26","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/40-of-bto-applicants-invited-to-book-a-flat-declined-offer-more-buyers-turn-to-hdb-housing-loans-amid-hikes-in-bank-rates-and-more\/"},"modified":"2022-06-28T11:50:56","modified_gmt":"2022-06-28T04:50:56","slug":"40-of-bto-applicants-invited-to-book-a-flat-declined-offer-more-buyers-turn-to-hdb-housing-loans-amid-hikes-in-bank-rates-and-more","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/40-of-bto-applicants-invited-to-book-a-flat-declined-offer-more-buyers-turn-to-hdb-housing-loans-amid-hikes-in-bank-rates-and-more\/","title":{"rendered":"40% of BTO applicants invited to book a flat declined offer, More buyers turn to HDB housing loans amid hikes in bank rates and more"},"content":{"rendered":"


\n40% of BTO applicants invited to book a flat declined offer, More buyers turn to HDB housing loans amid hikes in bank rates and more21st June to 27th June 2022
\nAbout 40% of applicants who were invited by the Housing and Development Board (HDB) to book a Build-to-Order (BTO) flat over the past five years ended up declining the offer. Meanwhile, more homebuyers are turning to HDB housing loans, amid the hike in mortgage rates at private banks.
\n\u00a0
\n1) 40% of BTO applicants invited to book a flat declined the offer<\/p>\n

About 40% of applicants who were invited to book a BTO\u00a0flat over the past five years ended up declining the offer, reported The Straits Times citing HDB.
\nIn a statement, HDB advised applicants who are invited to book a flat to accept the offer, given the buoyant housing demand over the past two years.
\nIt noted that those who pass on a chance to book a flat in the BTO or Sale of Balance Flats (SBF) exercise will see their additional ballot chances that were accumulated from previous unsuccessful applications set to zero.
\nIn 2020 and 2021,\u00a019 out of 46\u00a0BTO projects registered a first-time application rate of 1.7 or lower for three-room units or larger flats, which means each unit only has 1.7 applicants or fewer fighting for it. The flats range between three- and five-room units and are situated in both mature and non-mature estates.
\n\u201cWith these application rates, the first-timers who applied for these flats stood a good chance of being invited to book a flat,\u201d said HDB.
\nRelated article:\u00a0HDB BTO Application Rate (From 2020 to Now): Which Estates Are the Easiest to Get in Singapore\u00a0
\nBuying a home is the biggest financial commitment most will make in their lifetime. While securing a home remains a priority, perhaps this trend is an indication first-time home buyers are\u00a0more selective\u00a0and do not want to \u2018settle\u2019 when purchasing a property.
\nNotably, the\u00a0locations for these aforementioned BTO projects\u00a0were in HDB estates far from the city centre (i.e. Tampines,\u00a0Bukit Batok, Jurong West, and Tengah). These BTO projects may be less desirable due to their relative inaccessibility to public transport networks and longer travel times into the CBD than their city fringe, mature estate counterparts.\u00a0
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\n2) More buyers turn to HDB housing loans amid hike in bank rates<\/p>\n

More homebuyers are turning to HDB housing loans, which are currently offered at 2.6% per annum, as mortgage rates at private banks increase, reported The Straits Times.
\nHome loan rates at banks have been on the uptrend since the US Federal Reserve increased interest rates by 75 basis points on 16 June 2022.
\nRedbrick Mortgage Advisory\u2019s Associate Director Clive Chng noted that an HDB housing loan is especially useful for homebuyers who do not have a significant Central Provident Fund (CPF) or other savings as he has just worked for only a few years.
\nSome prefer an HDB loan since the rates are stable throughout the loan\u2019s term, said Gen Financial Advisory\u2019s Executive Financial Services Consultant Lee Meng.
\nShe explained that this is helpful in planning the finances of the family as the flat buyer can work a fixed amount per month for mortgage expenses into his budget.
\nCurrently, fixed interest rates have almost doubled since the start of the year.\u00a0As interest rates continue to rise and the cost of borrowing grows, slowing price increases and decreasing transactions volumes may be observed.\u00a0
\nFor more property insights, read the PropertyGuru\u00a0Singapore Property Market Report Q2 2022.
\n\u00a0
\n3) Ang Mo Kio SERS flat owners indifferent to new occupancy rule
\nSource: Google Maps
\nMany of the residents at Ang Mo Kio Avenue 3 have expressed indifference over the revised Minimum Occupancy Period (MOP) for replacement flats under the Selective En bloc Redevelopment Scheme (SERS), reported CNA.
\nThey explained that they are unaffected by the new rule since they plan to live in their replacement flat for the long term.
\n\u201cIt doesn\u2019t affect me. The most important is to be able to get a loan (to afford the new flat),\u201d said 54-year-old housewife Janice Ong, who lives in a four-room unit.
\nEvelyn Seow and her family also plan to hold onto their replacement flat considering that resale flats in Ang Mo Kio are \u201cvery expensive\u201d.
\n\u201cWe understand a lot of people are not happy about it. But for us, we\u2019re already used to this area and because it\u2019s a good opportunity to buy a flat (at a lower price) \u2026 It\u2019s still a lot, but ultimately, it\u2019s still cheaper than buying a resale flat at Ang Mo Kio (which is) about $700,000 to $800,000 for a four-room. But looking at the (four-room at the new site), it\u2019s about $400,000,\u201d she said.
\nOver 600 households are affected by this latest SERS exercise. Considering how owners of freshly MOP-ed HDB flats\u00a0tend to sell their homes for profit, the revised MOP is in place to reduce how quickly these new, SERS-subsidised flats can be \u2018flipped\u2019.
\n\u00a0
\n4) High Point en bloc sale tender to close on 28 July 2022
\nThe tender for High Point, a 22-storey residential tower at 30 Mount Elizabeth, will close on 28 July 2022, following growing interest for super prime residential sites.
\nExclusive marketing agent Savills noted that the 59-unit development occupies a 47,606 sq ft site that is zoned for \u201cResidential\u201d use under the 2019 Master Plan, with an allowable gross plot ratio of 2.8 as well as a height control of up to 36 storeys.
\nIt carries a guide price of $550 million or \u201c$2,508 per plot ratio after factoring in the 7% bonus GFA for balconies\u201d.
\n\u201cThe development charge payable for the 7% bonus GFA is about $18.8 million,\u201d said Savills.
\nJeremy Lake, Savills\u2019 Managing Director for Investment Sales and Capital Markets, shared that they have been in constant contact with developers following High Point\u2019s tender launch in March, adding that interest \u201cin super prime residential sites has picked up\u201d.
\nThe PropertyGuru Singapore Property Market Report Q2 2022 predicted that developers will favour small- and medium-sized\u00a0sites, due to raised Additional Buyer\u2019s Stamp Duty\u00a0(ABSD)\u00a0rates introduced during the\u00a0December 2021 property cooling measures.\u00a0Still,\u00a0larger projects like High Point, Lakepoint condo and Thomson View continue to be put up for collective sale.\u00a0
\n\u00a0
\n5) Pair of four-storey buildings at Balestier on sale for $15.3mil<\/p>\n

A pair of adjoining four-storey buildings at 16 and 18 Kim Keat Road has been put up for sale via expression of interest (EOI) with a guide price of $15.3 million or $1,438 per sq ft based on the gross floor area, revealed exclusive marketing agent Savills Singapore.
\nLocated within the Balestier precinct, the freehold buildings \u2013 which come with an attic \u2013 have a total floor area of 10,638 sq ft and occupy a combined land area of about 3,449 sq ft.
\nThe ground floor commercial units are approved for restaurant use and are leased to food and beverage operators. The upper floors, on the other hand, are residential units. Savills noted that the property also has an in-built mechanical car parking system for eight vehicles. Currently, the property is leased, providing the incoming buyer immediate rental revenue.
\nThe EOI exercise for the property closes on 26 July 2022.
\nThe city fringe property is close to Novena, one of Singapore\u2019s biggest healthcare medical hubs. The neighbourhood is marked out for rejuvenation\u00a0under the URA Master Plan.
\n\u00a0
\n6) Mixed-use building in Newton on the market for $20mil<\/p>\n

A five-storey mixed-use building at 200 Bukit Timah Road has been put up for sale via Expression of Interest (EOI) with a guide price of $20 million or $2,295 per sq ft based on its total gross floor area (GFA), according to exclusive marketing agent CBRE.
\nNestled on a 2,083 sq ft site within the Newton precinct, the District 9 property is a mixed commercial and residential building with a total GFA of about 8,715 sq ft.
\nThe freehold building, which comes with a private car park with five parking spaces, is currently fully leased to a veterinary centre with staff quarters, providing the successful buyer immediate rental income.
\nMichael Tay, CBRE\u2019s Head of Capital Markets for Singapore, expects strong interest from investors who are looking to capitalize on the rejuvenation and transformation plans for the area.
\n\u201cThe asset will also appeal to owner-occupiers looking for a building ideal for naming and signage rights,\u201d he said.
\nThe EOI exercise for the building closes on 27 July 2022.
\n\u00a0
\n7) Park View Mansions up for en bloc sale for $260mil<\/p>\n

Park View Mansions has been put up for en bloc sale with a tag price of $260 million, reported Singapore Business Review.
\nMarketing agent ERA Realty noted that the price works out to a land rate of $1,023 per sq ft per plot ratio (psf ppr).
\nThe development occupies a 191,974 sq ft site that is zoned for residential use under the 2019 Master Plan with a gross plot ratio of 2.1.
\nNotably, the site can be redeveloped up to a gross floor area of 403,145 sq ft, subject to URA and JTC\u2019s approval. A differential premium is payable to maximise the plot ratio.
\nERA Realty\u2019s Group Division Director Jeremy Rikas Chiu said an upscale 20- to 24-storey condominium project with over 440 units \u2013 assuming an average size of 915 sq ft \u2013 can be built on the site.
\nThe tender for Park View Mansions closes on 27 July 2022.
\nPark View Mansions is a 99-year leasehold property. By foot, the development is located 18 minutes away from Chinese Garden MRT station, connecting residents to\u00a0the East West line. With developments in motion for the Jurong Lake District to become the second CBD, properties in the area will likely see more interest in time to come.
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\n8) \u201cArchitect of modern Singapore\u201d is worried
\nAlthough it boasts one of the world\u2019s highest homeownership rates, Singapore is also one of the most expensive property markets in Asia.
\nThe city-state\u2019s high property prices are cause for worry for Liu Thai Ker, who is known as \u201cthe architect of modern Singapore\u201d.
\nIn an interview with Bloomberg, Liu shared that he believes that HDB\u2019s original policy \u2013 that is, to monitor supply and demand and build relatively low-cost homes \u2013 is still valid.
\n\u201cAnd on top of that, of course, to build highly self-sufficient new towns. All these things have respectively contributed to our economic growth.\u201d
\nHowever, he is concerned that public housing nowadays \u201chas become a kind of business venture, rather than actually solving housing needs\u201d.
\n\u201cI feel that the implication may not be very good for the economic development of Singapore,\u201d he added.
\nHDB resale prices continue to rise for the 23rd straight month, reaching record-high prices.\u00a0Lengthy build\u00a0times and enduring BTO construction delays\u00a0continue to push young families\u00a0into the HDB resale market.
\nRecently, non-mature HDB estates, Woodlands and Pasir Ris, saw the sale of the town\u2019s first million-dollar HDB flats. Affordability remains a concern, especially among the young in Singapore.\u00a0
\nRelated article: Buying Your First Home: 5 Misconceptions Gen Z Singaporeans Have Debunked
\n\u00a0
\n9) Why are Singapore properties valued conservatively?<\/p>\n

With several properties here in Singapore sold above their valuations, questions emerge on why investment properties tend to be undervalued compared to their actual transacted prices.
\nFrasers Logistics & Commercial Trust (FLCT), for instance, sold Cross Street Exchange for $810.8 million, up 28% from CBRE\u2019s $632 million valuation of the property as of 30 September 2021. CapitaLand Integrated Commercial Trust sold JCube for $340 million, which is also higher compared to the property\u2019s valuation by Colliers and Savills at $280 million and $278 million, respectively.
\nThe Business Times noted that there are reasons why investment properties within the city-state tend to be valued conservatively compared to their actual transacted prices.
\nAmong the reasons cited is the limited supply of good commercial properties available for sale.
\n\u201cPrime commercial properties in Singapore are generally tightly held, including by financially strong owners who are not keen on selling their assets. Many owners of prime commercial properties here are long-term investors, who focus on earning recurring income and long-term capital appreciation,\u201d it said.
\n\u00a0
\n10) IREIT secures a 12-year lease at Sant Cugat Green
\nEurope-focused real estate investment trust IREIT Global (IREIT) has secured a new lease for about 5,300 sq m of vacant data centre space at Sant Cugat Green in Spain, which represent about 20.4% of the property\u2019s total lettable area.
\nWith a duration of 12 years, the new lease agreement also includes a two-year renovation phase from 20 June 2022 as well as a \u201cbreak option at the end of the eighth year on 19 June 2030\u201d, said the IREIT\u2019s manager in an SGX filing.
\nThe tenant is a joint venture between two Spanish firms with operations in information technology and power electronics markets.
\nThe initial annual rent stands at \u20ac0.7 million (S$1.02 million) and comes with \u201can annual rent indexation based on a 3% margin above the consumer price index in Spain\u201d.
\n\u00a0
\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: cheryl@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…40% of BTO applicants invited to book a flat declined offer, More buyers turn to HDB housing loans amid hikes in bank rates and more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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Singapore saw demand for Build-to-Order (BTO) flats more than double from 2018 to 2020, with the overall number of flat applications rising from 38,500 in 2018 to 51,400 in 2019, before\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/hdb-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":121390,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-launches-4989-bto-flats-more-than-half-in-mature-estates\/","url_meta":{"origin":127407,"position":2},"title":"HDB launches 4,989 BTO flats, more than half in mature estates","date":"August 12, 2021","format":false,"excerpt":"\r Applicants can expect to wait between 37 to 67 months for the seven projects in the August 2021 BTO launch to\u00a0be completed. 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":89032,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-launches-6992-flats-in-may\/","url_meta":{"origin":127407,"position":3},"title":"HDB launches 6,992 flats in May","date":"May 22, 2018","format":false,"excerpt":"\r Artist\u2019s impression of the Kim Keat Beacon BTO project in Toa Payoh. (Photo: HDB) The Housing and Development Board (HDB) launched 6,992 flats for sale on Tuesday (22 May) under its May exercise. This comprises 3,970 Build-To-Order (BTO) and 3,022 balance flats. More: 1,500 HDB Flats Launching In Tengah\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2018\/05\/May-2018-BTO-prices.jpg?fit=893%2C714&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":102140,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-slightly-reduces-bto-supply-for-2019\/","url_meta":{"origin":127407,"position":4},"title":"HDB slightly reduces BTO supply for 2019","date":"December 10, 2018","format":false,"excerpt":"\r The BTO flat supply next year includes some 2,000 units in the new Tengah town. Source: HDB The Housing and Development Board (HDB) announced last Friday (7 Dec) that it intends to launch around 15,000 Build-To-Order (BTO) flats for the whole of 2019, down from the 15,800 units it\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":79011,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-launches-4381-hdb-flats-in-february\/","url_meta":{"origin":127407,"position":5},"title":"HDB launches 4,381 HDB flats in February","date":"February 6, 2018","format":false,"excerpt":"\r Artist\u2019s impression of the Tampines GreenFoliage BTO project. (Photo: HDB) The Housing and Development Board (HDB) launched 4,381 flats for sale on Tuesday (6 February) under its latest sales exercise. This includes 3,664 Build-To-Order (BTO) and 717 balance flats. 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