Bidadari continues to see high demand in Feb BTO exercise

New flats in Bidadari continue to be in demand among potential homebuyers, with five-room and multi-generation units being the most oversubscribed in the first Build-To-Order (BTO) sales exercise of 2016.

As at 5pm on Tuesday (Mar 1), five-room and multi-generation flats in Bidadari’s Alkaff Oasis were the most coveted, with 3,020 applicants vying for just 236 units – an application rate of 12.8 per cent. Of these, second-timers dominated the numbers – with an application rate of about 91 per cent, compared to first-timers, who had an application rate of 9 per cent.

PropNex CEO Mohamed Ismail said demand among second-time applicants is stronger in Bidadari as they have the ability to afford properties in the area.

“One reason is that this is the group of people who are older, and they do own an existing unit which has appreciated in its capital. And therefore it allows them greater ease to upgrade to Bidadari, compared to many of the first-timers who want to buy a Bidadari flat,” he said.

A five-room unit in Alkaff Oasis starts from S$546,000, excluding grants.

“Bidadari is a fairly popular location because of its proximity to MRT stations, as well as to the CBD. So for the upgraders, this will be the natural choice for them among the three locations,” said SLP International’s head of research and consultancy, Nicholas Mak.

“Most of the upgraders might already have children, so they prefer flats that have three bedrooms at least, which explains why the four-room and five-room flats have enjoyed higher subscription rates among second-timers,” he added.

Demand for new flats in Bidadari largely outstripped demand for flats on offer in non-mature estates Bukit Batok and Sengkang.

One thing that stood out in this BTO exercise for some property experts is the keen interest in new flats in Sengkang. Compared to the previous BTO exercise in November 2015, this crop of flats in Anchorvale Plains registered higher application rates across the board.

Mr Mohamed noted that the take-up rate used to be less than two in non-mature estates, such as Punggol and Sengkang, as there has been a huge supply coming on the market in the last few years. “But this time, it shot up – compared to the last BTO in Sengkang, close to five times more subscribers were interested in going after the units,” he said.

Its location – near an LRT station – was a big draw.

“Although it’s not located very near to the MRT stations, it’s located near an LRT station and also next to the Punggol Reservoir,” said Mr Mak of SLP International.

The next BTO sales exercise will be in May. More than 4,000 new flats – some in mature estates – will be on offer.

Source : Channel NewsAsia – 1 Mar 2016