HDB launches latest BTO project in Punggol

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As published in Channel News Asia
26 Mar 09 (Thursday)

By S Ramesh

The Nautilus@Punggol

SINGAPORE: The Nautilus@Punggol is the Housing and Development Board's (HDB) latest Build-To-Order (BTO) project and the first in that area.

Prices for its 4- and 5-room units are about 20 to 30 per cent lower than the resale flats in that vicinity, signalling generous subsidies for these new flats.

The Nautilus@Punggol will have eight blocks comprising some 520 flats. Of these, nearly 80 per cent are 4-room flats and the rest are 5-room apartments.

HDB said the prices of the new flats are affordable for first-time buyers.

Giving a comparison of resale flats about seven years old in Punggol, HDB said 4-room resale flats are currently going at between S$306,000 and S$350,000, while 4-room flats at The Nautilus will be sold at between S$228,000 and S$274,000.

Likewise, The Nautilus' 5-room flats are priced in the range of S$305,000 to S$357,000 against the resale price range of S$368,000 to S$428,888 for units in the Punggol area.

At such prices, analysts expect strong demand for the project.

Adam Tan, marketing manager, Propnex, said: "It will probably be about three times or more oversubscribed because they are releasing a rather small number of units for this project. Punggol is an up-and-coming estate. It's no longer a backwater estate – it's coming into its own."

HDB added that besides enjoying a generous market subsidy, eligible first-time buyers whose average monthly household income is S$5,000 or less can also qualify for an additional CPF Housing Grant of up to S$40,000.

This grant can be used to offset the initial downpayment.

HDB also said that based on the income of flat applicants in the fourth quarter of last year, an applicant for The Nautilus@Punggol whose income is at the median level will not need to fork out cash to meet their monthly housing commitments which would be fully covered by their monthly CPF contributions.

The Nautilus@Punggol is part of HDB's programme to remake the heartlands. For the whole of this year, HDB is planning about six BTO projects in Punggol, building some 3,000 new flats in that area.

Applications for The Nautilus@Punggol flats close on April 8.

- CNA/so

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Giving a comparison of resale flats about seven years old in Punggol, HDB said 4-room resale flats are currently going at between S$306,000 and S$350,000, while 4-room flats at The Nautilus will be sold at between S$228,000 and S$274,000.

HDB added that besides enjoying a generous market subsidy, eligible first-time buyers whose average monthly household income is S$5,000 or less can also qualify for an additional CPF Housing Grant of up to S$40,000.

Food for thought.

Seven years ago, a 4-room flat with common passage-way cost an average of $126,000. The slightly bigger ones with bay windows averages $ +-$140,000. Today BTO 4-room at $228,000 to $274,000. An increase of $102,000 to $134,000 within a period of 7 years. An increase of $14,571 to $19,142 per year.  although HDB claimed flats are heavily subsidised. 

First what is BTO. BTO is introduced at the time when Punggol was overbuilt. To make sure there are no surplus flats, BTO is born, presumably the standard of workmanship is similar  because every part of the building minus the main structural frame is fabricated in the open factory.

What do you think ? Is it better to apply and wait for brand new flats at a cheaper rate ( although it is no more cheap now ) or to buy second-hand ? Second hand flats are bought with risk of being harassed by " loan sharks " if you are unlucky. ( here the police also can't do much ) 

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As published in The Straits Times
27 Mar 09 (Friday)