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Latest Property Real Estate News - Published on 16/03/2010
The two new Build-To-Order (BTO) projects released by HDB today, Fernvale Ridge in Sengkang and Sembawang RiverLodge, are both set to be huge hits with the public. “Firstly, there are a total of only 828 units on offer for these two BTOs,” points out PropNex CEO Mr Mohamed Ismail, “barely half of the 1,534 units offered in February’s BTO projects in Punggol and Woodlands. “Then, we have to look at the flats on offer,” he continues. “Recent BTOs have offered studio apartments which do not make much sense to a young couple who are looking to start a family, as they will be locked into the BTO flat for a further five years after collecting their keys. Flats offered at the Fernvale Ridge and Sembawang RiverLodge BTOs only consist of 3-room, 4-room and 5-room flats.” Mr Ismail then highlights the very attractive pricing for both the projects. 4Q09 median resale prices for 4-room flats in the Sengkang and Sembawang estates were $352,000 and $340,000 respectively. In 1Q10, these prices changed: a 4-room flat in Sengkang commanded a median resale price of $372,000, while a similar flat in Sembawang dipped to $315,000. “Regardless, the median prices for a 4-room flat in Fernvale Ridge in Sengkang and Sembawang RiverLodge, at just $243,500 and $240,000, are 35% and 24% cheaper respectively than the median resale prices for similar flats in their areas,” he says, stating that these low prices will be a huge lure for the potential homeowners. Both BTO projects are located near schools, another selling point for young couples hoping to start a family, and Fernvale Ridge is conveniently located near Layar and Fernvale LRT stations. But Mr Ismail notes an outstanding factor offered by Sembawang RiverLodge: an eating house, supermarket and childcare centre will all be located within the development. “The convenient provision of these amenities will certainly increase the popularity of the flats there,” he says, “while Sungei Sembawang just behind the development will offer future residents a taste of waterfront living.” Because of the continued demand for public housing, in addition to the many factors above that will appeal to the public, Mr Ismail expects the two projects to be well-oversubscribed by at least eight times each. He maintains, however, that these new BTO projects will have not impact current resale flat prices, as BTOs impose a waiting period of about three to four years for the flats as compared to the immediacy of resale flats.
