Buyers have flocked to new three-room flats custom-built in Sengkang at Fernvale Flora and Fernvale Gardens. The 107 units available drew 933 bids. A third built-to-order (BTO) project at Segar Vale in Bukit Panjang had almost 500 bids vying for a place at 112 three-room units.
It’s possible that the spike in demand is linked to recent changes to the monthly income ceiling, which was raised to $5,000, up from $3,000. The Housing Board raised the ceiling for three-room flats in non-mature estates, seeking to give assistance to first-time buyers. Fernvale Flora’s three-room units ranged in price from $148,000 to $193,000, and Segar Vale’s cost $143,000 at the low end, up to $173,000.
Since the change in regulations, the number of buyers who have changed their application from a certain number of rooms to a three-room unit is at least 57. Many property experts commented on the fact that location was an important aspect of buyers’ decisions to opt in for a three-room flat. Adam Tan, spokesman for PropNex, spoke to The Straits Times, explaining that “'People see the potential in up-and-coming areas like Sengkang where [first-time buyers]... can enjoy the infrastructure, like close proximity to train lines.”
The high demand for the flats is a good indication of the home buyer mood, says Nicholas Mak, head of research at SLP International, adding that “confidence seems to be returning to the market as people come to grips with cooling measures, and that might explain the higher subscription rate.”