{"id":132642,"date":"2022-12-12T06:58:40","date_gmt":"2022-12-11T23:58:40","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-ramps-up-supply-of-private-homes-hdb-to-offer-more-bto-flats-with-shorter-wait-times-and-more\/"},"modified":"2022-12-12T15:02:26","modified_gmt":"2022-12-12T08:02:26","slug":"government-ramps-up-supply-of-private-homes-hdb-to-offer-more-bto-flats-with-shorter-wait-times-and-more","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-ramps-up-supply-of-private-homes-hdb-to-offer-more-bto-flats-with-shorter-wait-times-and-more\/","title":{"rendered":"Government ramps up supply of private homes, HDB to offer more BTO flats with shorter wait times, and more"},"content":{"rendered":"


\nGovernment ramps up supply of private homes, HDB to offer more BTO flats with shorter wait times, and more6th December to 12th\u00a0December 2022
\nThe Government has ramped up the private housing land supply on the Confirmed List under its Government Land Sales (GLS) Programme to 4,090 units for the first half of 2023, from 3,505 units in the second half of 2022. Meanwhile, Minister for National Development Desmond Lee said the Housing and Development Board (HDB) will raise the proportion of Build-To-Order (BTO) flats with shorter waiting times of less than three years over the coming years.
\n\u00a0
\n1) Government ramps up the supply of private homes<\/p>\n

The Government has ramped up the private housing land supply on the Confirmed List under its GLS Programme to 4,090 units for the first half of 2023, from 3,505 units in the second half of 2022.
\nNotably, the Confirmed List comprises five private residential sites, including one executive condominium (EC) site yielding 700 units, revealed by the Urban Redevelopment Authority (URA).
\nURA said the supply of private housing on the Confirmed List has been progressively ramped up over the last two years to \u201ccater to strong demand from homebuyers\u201d.
\nAlso included on the Confirmed List are two white sites at Marina Gardens Crescent as well as the Jurong Lake District.
\n\u201cThe injection of these sites and the associated space quantum are well calibrated to avoid an oversupply situation,\u201d said Lam Chern Woon, Edmund Tie\u2019s Head of Research and Consulting.
\nHe expects the white sites \u201cto attract keen bidding interest, given the greater leeway to curate new residential and business communities\u201d.
\n\u00a0
\n2) HDB to offer more BTO flats with shorter wait times in coming years
\nArtist impression of HDB BTO Aug 2022 Sun Plaza Spring, Tampines launch. Source: HDB
\nThe HDB will raise the proportion of BTO flats with shorter waiting times of less than three years over the coming years, reported The Straits Times.
\nHowever, it will take at least two years for this to happen since the Government\u2019s priority now is to launch BTO flats to meet urgent demand, following severe disruption over the past two years due to the COVID-19 pandemic, said Minister for National Development Desmond Lee.
\n\u201cBut after we get over this hurdle, this hump, we aim to tilt the balance of supply in the mid to longer term,\u201d he said.
\n\u201cThat has been the trajectory even before COVID-19, to build more shorter-waiting-time flats to complement the BTO supply, which would take anywhere from three to five years, depending on location and complexity,\u201d he added.
\n\u00a0
\n3) HDB prime location projects only in four towns for now
\nNational Development Minister Desmond Lee said only four towns will be considered prime locations for public housing projects for now \u2013 namely, the\u00a0Central area, Queenstown, Bukit Merah and Kallang\/Whampoa, reported The Straits Times.
\nAnd even in these towns, the HDB will still decide whether a certain BTO project will fall under the Prime Location Public Housing (PLH) Model, depending on the site\u2019s market value and other attributes like proximity to amenities, he said.
\n\u201cThe option is not to build in those locations, but we do want to build in those locations because we think there should be public housing all over Singapore. We shouldn\u2019t just build HDB flats in areas that don\u2019t have good attributes in a bid to try to keep subsidies and prices down,\u201d explained Lee.
\nHe added that the decision to constrain the PLH model within these towns is to give people certainty.
\n\u201cPeople ask if PLH is an amorphous concept. No, it\u2019s constrained to these towns at this point in time, and we look at attributes and market values,\u201d said Lee.
\n\u00a0
\n4) HDB town classification review may come with policy changes
\nNational Development Minister Desmond Lee believe an adjustment on the classification of HDB housing estates as mature or non-mature will come with other policy changes to make sure that flats remain affordable and accessible to a wide spectrum of Singaporeans, reported The Straits Times.
\n\u201cThe current classification causes a bit of disjoint in people\u2019s minds because there are some non-mature estates that command very high application rates,\u201d he said.
\nA BTO project within the non-mature estate of Jurong East, for instance, attracted over 12 first-time applicants for each four-room flat offered in August 2021, while a BTO project within the mature estate of Kallang\/Whampoa received six first-time applicants.
\n\u201cClassification affects both expectation and perception of availability, pricing and demand of new flats. Already you see that the current classification does not necessarily lead to differences on those three parameters,\u201d said Lee.
\n\u201cWe want to make sure the classification reflects ground reality and people\u2019s expectations. That\u2019s the feedback that we\u2019re getting and hence, we\u2019re looking at whether future housing policies need to evolve, bearing in mind the changing face of our estates,\u201d he added.
\n\u00a0
\n5) BTO flats priced with affordability in mind, not profit-driven, says HDB
\nHDB has revealed some details on how prices of BTO flats are determined as well as their development costs, reported CNA.
\nHDB underscored that BTO flats are priced with \u201caffordability in mind\u201d, unlike the private sector, which is profit-driven.
\nIn pricing BTO flats, HDB shared that it establishes first the flats\u2019 market value by considering the prices of comparable resale flats nearby.
\nRelated article:\u00a0Singapore HDB Resale Flat Price Guide: How Much Should You Pay in Q4 2022
\nA \u201csignificant subsidy\u201d is then applied to the assessed market value to ensure that the new flats are affordable for house buyers.
\nHDB noted that its flat pricing approach is \u201cseparate and independent from the BTO projects\u2019 development costs\u201d.
\n\u201cBy increasing the subsidy applied in a rising property market, HDB has kept BTO flat prices relatively stable. This was the case even in the past two years when construction costs had increased by almost 30%,\u201d it explained.
\nIt added that the total development cost, which includes land and construction costs, cannot be fully covered by the flats\u2019 selling prices since the latter is highly subsidised.
\nSenior Minister of State for National Development Sim Ann said drastically lowering the prices of BTO flats by disregarding land costs would only hurt all Singaporeans, instead of helping them, reported CNA.
\n\u00a0
\n6) Not fair to compare prices of today\u2019s HDB flats with those built decades ago<\/p>\n

Nicholas Mak, Head of Research and Consultancy\u202fat ERA Realty, said it is not fair to compare the prices of today\u2019s HDB flats with those built a few decades ago.
\n\u201cIt is a fact that the prices of HDB flats have increased. But household incomes have also risen over the years,\u201d he said in a commentary posted in CNA.
\nHe pointed out that HDB\u2019s approach is to keep BTO flat prices affordable and \u201cnot necessarily at an artificial \u201clow\u201d level\u201d.
\nHe added that keeping BTO flat prices at a \u201cvery low\u201d level \u2013 or under the level which makes flats affordable for most buyers \u2013 would also increase the financial burden on government coffers.
\nThis comes as the Government would have to raise the subsidies for public housing.
\nRelated article:\u00a0CPF Housing Grant Eligibility in Singapore: How Much Grant Can BTO, Resale HDB Flat and EC Buyers Can Get (2022)
\nAnd when BTO flat buyers eventually sell their flats, they will see a very high profit since the flats were acquired at very low prices from the government.
\n\u201cThis profit represents a transfer of funds from the government coffers to the individual flat sellers. This would be unfair to taxpayers who are not eligible to buy BTO flats,\u201d said Lee.
\n\u00a0
\n7) First Marina South site launched for sale, may attract bids of over $1 billion
\nSource: URA
\nThe first Marina South site \u2013 which is zoned for residential development with commercial at first storey site \u2013 has been launched for sale in a state tender that analysts expect to attract bids of over $1 billion.
\nLocated at Marina Gardens Lane, the 12,245.1 sq m site can yield around 790 residential units and 750 sq m of commercial space.
\nHuttons Asia said the site is probably the best site offered under the 2H 2022 Government Land Sales Programme.
\n\u201cIt is the first site in the Marina South precinct to be offered for sale and gives the first-mover advantage to both developers and buyers,\u201d it said.
\nWith this, OrangeTee expects the site to attract strong interest from developers, with the potential bid for the site exceeding $1 billion.
\n\u201cWe anticipate between two to five bidders, at a top land price of $1,450 to $1,550 psf ppr\u201d, it said.
\nThe tender for the site closes on 27 June 2023. It will be \u201cbatched with an executive condominium site at Tengah Plantation Loop and a Commercial and Residential site at Tampines Avenue 11, both of which will be launched in the later part of December 2022\u201d, said URA.
\n\u00a0
\n8) Construction of Punggol interchange station, tunnel under Central Catchment Nature Reserve to start in 2023
\nSource: LTA
\nConstruction of the Punggol interchange station for the Punggol Extension of the Cross Island Line MRT Line (CRL) will commence in 2023.
\nRelated article:\u00a0Cross Island Line MRT Planned Stations (Phase 1): 10 Lucky Condos to Benefit
\nThis comes after the Land Transport Authority\u00a0(LTA) awarded the $496 million contract to design and build the interchange station to Woh Hup.
\nMeanwhile, construction works for a 5km tunnel under Phase 2 of CRL will also begin next year, with the $758 million contract to design and build the tunnel awarded to Obayashi Corporation and Shanghai Tunnel Engineering Co (Singapore).
\nLTA noted that a portion of the tunnel will run beneath the Central Catchment Nature Reserve.
\n\u201cHere, the tunnel will be constructed up to an approximate depth of 70 metres below ground level, deeper than the usual 20-30 metres,\u201d it said.
\nLTA assured that all measures to mitigate the project\u2019s environmental impact will be carried out, adding that it will also \u201ccontinue to engage stakeholders including the nature groups during the construction works\u201d.
\n\u00a0
\n9) Office space demand to slow down in 2023
\nOffice rental growth in Singapore is expected to slow down next year as companies assess their expansion plans amid the economic headwinds, reported Singapore Business Review citing Cushman and Wakefield.
\nNotably, CBD Grade A office rents are anticipated to grow by 2% to 4% year-on-year in 2023, down from the 6.2% year-on-year growth expected for 2022.
\nHowever, Cushman and Wakefield expect tight supply to underpin next year\u2019s rental growth.
\n\u201cTake-ups at new CBD developments have been healthy. Guoco Midtown, poised to be completed by the end of 2022, is expected to be more than 60% pre-committed by completion,\u201d it said.
\n\u201cThe only new CBD Grade A development in 2023, IOI Central Boulevard Towers, would deliver about 1.2 million sq ft of office space and is 30% pre-committed by e-commerce giant Amazon.\u201d
\nOver the medium term, the CBD Grade A office supply pipeline is limited, with an expected annual supply of 0.7 million sq ft from 2023 to 2027, down from the ten-year annual average of around 1 million sq ft.
\n\u00a0
\n10) New economy assets to fuel growth for industrial property rent
\nCushman and Wakefield expect prime logistics, warehouses as well as city-fringe business parks, known as new economy assets, to drive rental growth in the industrial property market next year, reported Singapore Business Review.
\nNotably, performance across industrial property types is forecast to be divergent, with new economy assets likely to outperform due to tight supply and resilient long-term demand from life sciences, e-commerce and technology.
\nMeanwhile, outlying business parks and conventional factories are anticipated to register slower growth of up to 1% next year due to a higher supply pipeline.
\n\u201cNonetheless, performance will bifurcate, as newer, higher spec buildings outperform older stock,\u201d said Cushman and Wakefield.
\n\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u202fListings,\u202fProject Reviews\u202fand\u202fGuides.\u00a0
\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…Government ramps up supply of private homes, HDB to offer more BTO flats with shorter wait times, and more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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