Every quarter, Singaporeans looking for a home will get the chance to apply for new HDB flats being launched.
The latest August 2017 Build-To-Order (BTO) launch has just been announced with a total of 5,291 units up for sale. Interested flat buyers have until 7 August to submit their application.
For the first time, a new initiative called the Re-Offer of Balance Flat (ROF) will be offered. The ROF consists of Sales Of Balance Flats (SBF) that remains unsold from the November 2016 exercise. In total, this accounts for 1,394 flats offered across over 25 different estates.
But before you get too excited drooling over the prospect of buying a BTO flat in places like Ang Mo Kio, Toa Payoh or Kallang, you should first check out the units available for the ROF from the HDB website. You will quickly find that for popular estates, there are only a handful of bigger units left, with the rest being 2-room flats.
Read Also: 5 Ways To Spend Less On Your First HDB Flat
New BTO Flat Launch
For new BTO flat launches, there are a total of three projects spread across two estates. The two estates are Sengkang and Bukit Batok. Both Sengkang and Bukit Batok are considered non-mature estates. You can find out more about the BTO projects here.
#1 Sengkang – 2,500 Units, Location: Near Bakau LRT, Along The Punggol Serangoon Reservoir (2-room, 3-room, 4-room, 5-room)
Source: HDB
This appears to be a massive project with a huge land site. However, bear in mind that of the 2,500 units offered here, 1,074 units are 2-room flats.
Our Analysis:
The location on offer isn’t exactly the most attractive. Depending on where you stay within the estate, you can expect about a 10 minutes daily walk to the nearest station, Bakau LRT. The main MRT station, Sengkang MRT, is about a 6 minutes drive, or if you take a bus, between 10 to 13 minutes away.
Prices of flats are attractive with 4-room flats ranging from $252,000 to $331,000 and 5-room flats ranging from $317,000 to $399,000. Contrast that to the medium price of resale flats in Sengkang, which is $415,000 for 4-room flats and $440,000 for 5-room flats, and you can see how you could save about $100,000 if you opt for the flats here.
If you want to stay in the Sengkang/Punggol area, this BTO could be a great location to start off with. Yet, it may not be prime Sengkang, but it’s walking distance from an LRT and you could easily get a 4-room flat at a low $200,000+ after taking into consideration HDB grants.
#2 Bukit Batok (Sky Vista) – 257 Units, Location: Near Bukit Batok Community Club (2-room & 3-room)
Source: HDB
For the first location, Sky Vista @Bukit Batok, we have good news and bad news.
The good news is that the location is great, being just a 6 minutes walk away from Bukit Batok MRT and a stone throw away for most of the amenities in the town. The bad news is that only 2-room and 3-room units are available for this location.
Our Analysis:
Older folks who are already staying around the area and want to right size to a smaller flat for retirement will find this attractive. The location is great, being well situated in the midst of amenities and other older flats. Homebuyers basically enjoy a new flat in a prime area within the Bukit Batok estate.
#3 Bukit Batok (West Scape) – 1,140 Units, Location: Near Millennia Institute, Dunearn Secondary School (new site) (2-room, 3-room, 4-room, 5-room)
If you want bigger flats in Bukit Batok, you have to opt for the West Scape project instead. This larger development will offer 340 units of 4-room flats (from $265,000) and 178 units of 5-room flats (from $353,000)
Our Analysis:
Though it isn’t walking distance from the MRT, it’s just a few bus stops away from Bukit Batok MRT station and situated in a reasonable location within Bukit Batok, which by itself is also a decent location.
With an attractive selling price for the flats, we fully expect bigger units in this estate to be oversubscribed, mainly by couples who are already staying in places like Choa Chu Kang, Jurong and Bukit Batok, and who would want to continue living in the west.
Read Also: Complete Guide To HDB Housing Grants In Singapore
Choose The Right BTO That Suits Your Needs
Buying a flat is a huge financial decision. As always, we encourage you to work out your sums before committing to a flat. If budget is a concern, you could always explore grants available to you and to opt for smaller flats in non-matures estates.
Listen to our podcast, where we have in-depth discussions on finance topics that matter to you.
