For the first time in over a decade, Singapore saw the launch of nearly 5000 BTO flats, with more than half of them in mature estates. These estates include ones in Hougang, Jurong East, Kallang/Whampoa, Queenstown, and Tampines. Due to the strong demand for housing in the mature estates, HDB has been building more flats in those areas. These flats are popular as they give buyers the option to buy a flat near their family members living there, opening up the opportunity for mutual care and support, among other reasons.
Compared to the other BTO launches announced in 2021, the August 2021 BTO launch has the most number of estates and units. With seven project launches across 5 estates, featuring 3 mature estates and 2 fairly established non-mature estates, there are quite a lot of options to choose from. If you have submitted an application for one of the August BTO projects, you are facing fierce competition. Read on to find out why and possible housing alternatives if you do not get a ballot number successfully.
The BTO Flat Demand in Singapore
The demand for the BTOs launched in August can only be understood through the massive response and interest shown by home seekers. Surprisingly for this launch, non-mature estates saw a far larger demand than mature estates, with buyers making a beeline for flats in Hougang and Jurong East. Of all two BTO exercises this year, this is the first one in which such a demand was seen. With the ballooned demand in non-mature estates, one would wonder why the Hougang, and Jurong East units are so popular.
The strong demand seen in the non-mature estates bucks the current trend of home buyers’ preference for mature estates. With its location next to Kovan MRT station on the North-East Line, it is no surprise that many buyers were drawn towards Kovan Wellspring. Demand in Jurong East was most likely due to the fact that there have not been many BTO launches there. It is the first one in 10 years, and with its walking distance to a station on the future Jurong Region Line, demand was huge.
Why are BTO flats a popular choice? Owning a HDB in itself is an expensive accomplishment. BTO flats slightly ease the burden on newly-wed couples by providing them with an option to purchase a brand-new flat in the most affordable way. Extensive grants and subsidies from the Singapore government help first-time buyers reduce the financial burden, along with the assistance of CPF accessibility. Furthermore, buyers are also attracted by the possibility of profiting from the property by selling their HDB flat after the Minimum Occupancy Period (MOP) since the lease will still be long after 5 years.
Alternative Methods to Buy a HDB Flat in Singapore
However, the high demand for BTO flats combined with stiff competition makes it unlikely for many couples to find a unit on their first few tries. Fret not, as there is an alternative – resale flats! What’s more, you can save valuable time as there is no long waiting time as the flat is already built and ready to move into.
Resale flats are HDB flats that are currently owned by someone else. These flats would have been lived in for at least five years, which is the Minimum Occupation Period (MOP). As you are taking over the property from a previous owner, it removes years off the waiting time.
Resale flats do not come with a fresh 99-year lease as new BTO flats do. When you purchase an older flat, there will be fewer years left on the lease. However, there are a whole lot of great reasons as to why resale flats can be a great option for you.
Why Buy Resale HDB Flats Over BTO flats?
You are not limited by an income ceiling limit – so you do not need to worry about hitting a certain annual income to be eligible, unlike BTOs that have an income ceiling of $14 000. Depending on your eligibility, there are also more grants that you can be eligible for, more so than when buying a BTO flat. There is also no need to ballot for flats, which eliminates the whole stress of depending on chance or luck. And finally, the options for locations are limitless, since you will be able to find resale HDB flats for sale in most regions of Singapore.
If these slivers of silver linings look appealing to you, resale flats may be the option for you. With years of experience in selling HDB flats and matching buyers with their dream homes, leave your house hunting journey in the professional and capable hands of Home Property Agent. And find yourself with the keys to your new home sooner than you thought possible!
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