Larger BTO flats in Ang Mo Kio & Tampines oversubscribed by 13 times & 11 times respectively

The smaller flats in this sales exercise were considerably less popular.

Jason Fan | November 19, 2019, 09:00 PM

Larger build-to-order (BTO) flats in Ang Mo Kio and Tampines went like hotcakes during the Housing Development Board (HDB)'s most recent sales exercise, which concluded on Nov. 18.

The four- and five-room flats for both mature estates were heavily oversubscribed, while the competition for similar flats in the non-mature estate of Tengah was considerably less.

Mature estates heavily oversubscribed

According to The Straits Times (ST), there were more than 13 first-time applicants who made bids for each of the 235 four-room flats in Ang Mo Kio, which is the biggest unit type in the estate.

Similarly, in Tampines, there were about 11 bids for each of the 193 five-room flats, and 218 four-room flats.

On the other hand, the competition was considerably less fierce for the bigger flats in the non-mature estate of Tengah.

The four- and five-room flats, as well as three-generation flats, had about two applicants for each of the units.

Those applying for a smaller flat in Tengah likely get it

For all three estates, the demand for smaller flats was considerably less.

The 87 three-room flats up for grabs in Ang Mo Kio attracted only around two applicants each, while only three applicants made bids for each of the 90 three-room flats in Tampines.

A three-room unit in Tengah had an application rate of 0.7, which meant that all applicants are likely guaranteed a flat.

Recent changes to grants and income ceiling may be driving up demand

The HDB launched 4,571 new BTO flats for sale on Nov. 12, which was the last and biggest BTO sales exercise for the year.

The sales exercise also included 3,599 units under the Sale of Balance Flats (SBF), in various mature and non-mature estates such as Bishan, Clementi, Bukit Panjang, and Punggol.

This was the second sales exercise after bigger grants and higher income ceilings were announced for first-time flat buyers.

With the introduction of the HDB's new Enhanced CPF Housing Grant (EHG), first-time homeowners seeking the maximum amount of grants are no longer restricted to buying new flats in non-mature estates.

They could possibly purchase resale flats, or five-room flats, and be eligible for a grant of up to S$80,000.

Eligible first-time homeowners buying resale flats can continue to enjoy the CPF Housing Grant, in addition to the EHG.

They will also retain the Proximity Housing Grant of up to S$30,000 for living with or near their parents, as well as a Family Grant of up to S$50,000.

Altogether, first-timer couples buying a resale flats can now receive up to S$160,000 in grants.

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Top image from HDB.