HDB ramping up supply of flats
7,000 units will be released over the next three months
By Jessica Cheam(Taken from the Straits Times on the 2nd of October 2009)
THE Housing Board will unleash about 7,000 flats onto the market over the next three months in an aggressive step to tackle rising concerns over supply and affordability.
The 7,000 homes exceed the 6,450 units released for first nine months of this year.
They also include 2,132 units in 24 estates across the island that have just been finished, or are near completion. They were launched yesterday in what was the Housing Board's single largest sales exercise in recent times.
National Development Minister Mah Bow Tan announced the move yesterday, on a day when new figures showed that HDB resale flat prices rose 3.2 per cent in the third quarter over the second quarter to reach another record high.
The price surge follows an increase of 1.4 per cent in the second quarter over the first three months of the year.
Mr Mah told the media yesterday: 'I want to assure everybody that there are sufficient flats available across the board for every budget.'
The high demand for housing, reflected in the price rises in yesterday's flash estimates, is likely behind HDB's move to lift housing stock.
Industry analysts say the steps to boost supply should have an impact on resale flat prices.
'COV levels will likely dip due to the immediate addition of these flats,' said PropNex chief Mohamed Ismail.
COV refers to 'cash over valuation' - the cash a buyer pays over and above a flat's valuation.
But Ngee Ann Polytechnic real estate lecturer Nicholas Mak says a dip in COV levels is unlikely to be sustained if the buying momentum continues.
'It will slow down the pace of price increase only temporarily. In the past three years, an average of about 3,200 resale flats were transacted each quarter, which is about 50per cent more than the 2,132 flats offered for sale,' he said.
HDB's move to increase supply comes amid growing discontent among buyers priced out of the market by high demand and limited supply.
HDB resale prices have risen by a hefty 31.2 per cent in the past two years.
An online petition to Mr Mah started circulating last month to collect 1,000 signatures calling for lower flat valuations and more affordable homes.
As of last night, it had received 1,079 names.
The minister added yesterday: 'The Government has made a commitment to provide our people with quality, affordable housing.
'This is a commitment that we will keep... and if there is a necessity, we will step up the building programme even further.'
The new flats earmarked for the rest of the year are being released under two main schemes.
Flat supply under the build-to-order (BTO) scheme for the year will be ramped up to 9,000 from about 8,000 announced previously.
About 5,000 units under the BTO programme will be launched for sale in Punggol, Sengkang, Jurong West, Sembawang, Bukit Panjang and Dawson.
The highly-anticipated 1,700 flats by award-winning architects at Dawson estate in Queenstown, which were to have been launched last month, will now be released in December, said HDB.
The Housing Board also unveiled a new scheme called Sales of Balance Flats (SBF), which will replace the existing balloting, quarterly sales and half-yearly sales exercises.
It offers flats from earlier BTO exercises, the Selective En-bloc Redevelopment Scheme and repurchased flats and will be launched as and when sufficient flats accumulate, said HDB.
The aim is to simplify the flat application process and provide buyers with a wider choice of flats across a range of locations in one exercise.
The 2,132 flats launched yesterday fall under this new scheme. They range from studio apartments to executive flats, priced from $97,000 to $643,000.
Analysts are expecting a rush, especially as the prices of three-, four-, and five-roomers are about half of their respective resale prices, noted Mr Mak.
Home buyer Lynn Koh, 28, is one person preparing to apply.
'COV has risen in Whampoa, where my parents live, so I hope to be successful,' she said.
As of 5pm yesterday, HDB had received 2,038 applications for the 2,132 flats. Applications close on Oct 14.
jcheam@sph.com.sg
Saturday, October 10
HDB ramping up supply of flats
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Saturday, October 10, 2009
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