HDB releases 8,000 flats for sale

THE Housing Board yesterday put a bumper crop of 8,000 flats on the market.

The highly anticipated launch will see new measures kick in to help couples expecting a child, second-timers and divorcees seeking to downgrade, and seniors looking for a studio apartment get a flat.

But with 3,100 balance flats on offer, including coveted units in Queenstown, Toa Payoh and Pinnacle@Duxton in central Singapore, property analysts are urging home seekers to choose carefully given the expected high demand.

"By widening the net of eligibility, we expect to see a strong response for the choice balance units," said Mr Nicholas Mak, head of research at property firm SLP International. "But it's a double-edged sword for these applicants due to increased competition, so they need to weigh their chances carefully."

Balance flats are more sought after as they are either already built or close to completion, unlike Build-To-Order (BTO) units which may involve a wait of up to three years.

The 3,100 balance units being offered are spread out across many towns. But notable units include a $769,000 five-room flat at Pinnacle@Duxton, considered to be one of HDB's most up- market developments with high resale value, according to analysts.

Also on the market is an 18-year-old repurchased executive apartment in Mei Ling Street that spans more than 1,600 sq ft and costs $760,000.

International Property Advisor chief executive Ku Swee Yong said balance flats in mature estates are a good deal as they are cheaper than resale flats in those areas. "Buyers should play it smart in selecting their flat to avoid disappointment," he said.

The 4,900 BTO units being offered are in Choa Chu Kang, Hougang, Jurong West, Sembawang and Woodlands.

OrangeTee's head of research Christine Li said the Spring Haven@Jurong development, where two-room to four-room flats are being offered, will also attract plenty of demand.

"The last time larger flats were offered in this area was more than two years ago, and resale prices have appreciated more than 10 per cent since," she said.

Demand for the 8,000 flats, especially the balance ones, is expected to be spurred by the enhanced Parenthood Priority Scheme (PPS), which began in January. Part of a swathe of initiatives to reverse falling birth rates, it sets aside 30 per cent of BTO flats for first-timer married couples with a child below 16.

The quota is 50 per cent when it comes to balance flats. This is the first time since the start of PPS that balance flats are offered.

Starting this launch, the scheme will also cover first-timer couples with a baby on the way.

The quota of two- and three-room BTO flats in nonmature estates reserved for second-timers also goes up from 15 per cent to 30 per cent this launch. A part of this quota - 5 per cent - will be set aside for divorcees with children below 16.

In addition, the Studio Apartment Priority Scheme will see half of all studio apartments on offer reserved for seniors who want a unit close to their current home, or near their married children.

Prices for the 4,900 BTO flats start from $82,000 for a 480 sq ft two-roomer in Sembawang, which drops to just $22,000 when grants are included. A five-room BTO flat can reach $381,000 without grants. Balance flats start from $148,000 for three-room units in non-mature estates.

Applications close next Wednesday.

First-timer Daniel Woon, 25, who was eyeing a flat in Ang Mo Kio as it was close to his parents' place, said he needs to be careful about making his choice. "There's a week to consider, so I'll see how demand is before going in, otherwise I might miss the boat."

darylc@sph.com.sg

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