Huttons' comments on Nov 2022's BTO projects | Huttons Group

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Huttons’ comments on Nov 2022’s BTO projects

Huttons Research

HDB launches its largest ever BTO launch of 9,655 units in Nov. Out of the 9 BTO launches, 3 are designated as PLH flats. They are Ghim Moh Natura, Ulu Pandan Banks and Kallang Horizon. A total of 10 PLH projects have been launched to-date.

Ghim Moh Natura is next to Ghim Moh Ascent which was also launched as a PLH project in May 2022. So it is not surprising that Ghim Moh Natura is also a PLH project. It is closer to Buona Vista MRT station and Henry Park Primary School, a super popular primary school is within 1km. The prices for flats in Ghim Moh Natura are similar to Ghim Moh Ascent. The application rate may be between 1 and 4.
Ulu Pandan Banks is right next to Dover Forest and Ulu Pandan Canal. Residents will enjoy views over the nearby Holland Grove landed estate. It is HDB’s first car-lite precinct and within walking distance to Dover MRT station. There will also be a 600m jogging track at the 34th storey. Despite the location further from the city centre, the selling prices are higher than Ghim Moh Natura probably due to the more complex construction which will take almost 6 years to complete. The longer construction period may deter applications to between 1 and 4.
Kallang Horizon is probably the best launch in Nov. It is right next to Kallang MRT station and next to Kallang River. A parcel of land opposite Kallang MRT station is zoned commercial so residents may potentially see more amenities in the future. This PLH project may attract more applicants than the other 2 PLH projects as the prices are almost similar. The application rate may be between 2 and 5.
The additional subsidies for PLH flats may make it easier for first timer families to buy a flat in a mature estate.
The Yishun and Tengah BTO launches are worth considering. The two BTO at Tengah are beside Tengah Pond and the future Hong Kah MRT station. They also have a shorter construction time of 3.3 years. The 3 BTOs at Yishun are next to nature and will enjoy sweeping views of Lower Seletar Reservoir.
Given that Nov BTO exercise will be the largest ever and spread across varied locations, it may dilute the overall application rate to around 1 to 5.
The review of mature and non-mature estates classification may possibly see some non-mature estates like Bukit Batok, Jurong East and Hougang shift to the mature estate category. The average age of flats in these three HDB towns are more than 25 years old and they are well-developed in terms of infrastructure and amenities. Furthermore Jurong East is planned as the second CBD. If the perception of some of these non-mature estates change, demand may possibly be diverted to them and push up prices of homes. We may see a new HDB town classification “emerging” and could be applied to towns like Tengah and Paya Lebar.