The moderate sales of last year’s two launched Housing Board flats suggest that there are still sufficient choices for first-time home buyers despite the fact that in some areas, demand for flats are already high.

Based on the latest data released by HDB this week to The Straits Times, Punggol Breeze had a 69 percent take-up rate while only 55 percent of those who had applied chose units in Sengkang’s Fernvale Residence. As the waiting time for (BTO) build-to-order projects will take them too long, ranging from three to four years, several home seekers declined the chance to purchase flats under the said project.

”Some eventually decided to opt for other housing that can be ready sooner than BTO flats,” HDB said.

With the astounding response of 2,132 nearly completed or completed HDB units launched last week, waiting time is likely a vital factor.

Surge for applications for homes across the island in the 24 estates are apparent, which include those flats in the location for the 2 BTO projects.

As of five in the afternoon yesterday, for every flat in Punggol with four rooms, there were seven bids, and for the four-roomer in Sengkang, there were 25 bids.

HDB assured those home seekers who purchased at the two BTO projects that work on their flats will soon be in progress.

Under the scheme of BTO, units are constructed upon reaching a particular demand, usually around 70 percent. However, HDB said that the percentage only serves as a guide. HDB told The Straits Times that they will already begin the construction of projects in Sengkang and Punggol.

The case of Fernvale Residences will be the 1st BTO project to be constructed with lower than 60 percent take-up rate, an effort signalling the confidence of HDB in a continued demand for public housing.

According to HDB, it will aid to create serious mass of required residential units for the further development of the area.

In the past, poor take-up rates have not dissuaded construction. Despite only having 67 percent take-up rate, the projects in Sengkang called the Fernvale Court had been under way since 2007, while the Punggol project had been in progress since 2003. Today, both projects are 97–99 percent sold.

Mohamed Ismail, chief executive of PropNex, said that considering that the units are located in non-mature estates, the figures showed a strong sale.

Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said that the failure of the project not to fare as well is not surprising due to its distance from the MRT stations.

Both of the analysts claimed that the move of the HDB to pursue with the projects despite not reaching the desired take-up rates was a move ‘in the right direction’, because it would reload its supply of units, which has been exhausted due to its great demand in the recent years.
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