Two new BTOs to draw crowds with low prices, location

The two new Build-To-Order (BTO) projects released by HDB today, Boon Lay Grove and Floral Sping @ Yishun, are both set to be hugely subscribed to based on their low prices compared to resale flats in their vicinities as well as their locations.

“The prices of these new flats are between 19% to 22% cheaper than comparative flats in the respective vicinities of the BTO projects,” observes PropNex Communications Manager Adam Tan. “The median price of a 4-room flat at Boon Lay Grove at $263k, for example, is 22% cheaper than the median resale price of $336k for a 4-room flat in Jurong West in 1Q10.”

Mr Tan explains that the low prices will be a huge draw for new homeowners who are looking to start a family in the next few years.

“Couples need to plan ahead,” he advises. “These BTO flats will only be available in about 4 and a half years' time. Couples who get married in the interim can stay with their parents or rent a flat if they need privacy. And when they're ready to start a family after a few years of living as a couple, their flat will be ready with room for the children.”

“It is interesting to note,” points outs Mr Tan, “that of the 1,050 BTO flats on offer at both Boon Lay Grove and Floral Spring @ Yishun, 564 (53%) consist of the perenially popular 4-room flats. This is an ideal flat size for young couples embarking on their career and looking to start a family.”

The other flats consist of 5-room flats, save for 96 studio apartments at Floral Spring @ Yishun, which are developed with the elderly in mind.

Mr Tan notices that while both BTO projects are not especially near MRT stations, there are other more pertinent draws for young couples: the many schools within a 1km radius.

“Both Boon Lay Grove and Floral Spring @ Yishun are located near quite a few schools,” he says, “a major selling point for young couples with their future children in mind. Boon Lay Grove is near the PIE and Boon Lay Shopping Centre. Floral Spring @ Yishun offers many recreational escapades nearby, such as SAFRA Club (Yishun), Yishun Pond, Yishun Park and Lower Seletar Reservoir. The only drawback may be the fact that both BTO projects are not especially close to an MRT station, with both requiring at least a 10 to 15 minutes' walk to the nearest station.”

However, because of the continued demand for public housing, which is evidenced by the fact that overall median COV (Cash-Over-Valuation) inched up another 4% from 4Q09 to 1Q10, Mr Tan expects the two projects to be oversubscribed by at least six times each.

He also states that these new BTO projects will not have any impact on current resale flat prices, due to the long waiting period imposed by the BTOs, as compared to the immediate availability of resale flats.