No subsidy clawback for 2nd resale onwards; construction time and 10-year MOP mean owners can only resell Rochor flats from 2038
[SINGAPORE] A total of 4,501 Build-To-Order (BTO) flats were launched for sale by the Housing Board on Wednesday (Nov 17), including 960 units in Rochor – the first project under a new prime location public housing (PLH) model – which comes with a 6 per cent subsidy clawback clause upon their resale.
The units are spread across 9 housing projects in 6 estates, with a median waiting time of 4.4 years for flats to be completed.
In addition, another 1,798 flats were on offer in this year’s second, and final, Sale of Balance Flats (SBF) sales.
In total, 6,299 new flats were launched on Wednesday.
The highly anticipated PLH project – River Peaks I and II in Rochor – comes with stricter buying and selling conditions.
A total of 960 3-room and 4-room flats are on offer across 6 47-storey blocks. Another 40 2-room rental flats will be integrated in one of the blocks.
The project sits on 2 plots of land along Weld Road and Kelantan Road and is directly connected to Jalan Besar MRT station.
Prices start from S$409,000, without grants, for a 3-room flat and S$582,000 for a 4-room flat, making them the most expensive units in a mature estate in this launch.
The prices are slightly higher than those in August’s Queenstown BTO project, Queen’s Arc, where a 3-room flat started from S$382,000 and a 4-room flat began from S$540,000.
Under the PLH model, owners of these Rochor flats will pay 6 per cent of the resale price or valuation, whichever is higher, to HDB when they resell their home on the open market for the first time.
The subsidy clawback only applies to the first resale transaction and does not apply to subsequent resales.
This is because HDB has to provide additional subsidies on top of those provided for all BTO flats in order to launch these prime areas flats at affordable prices.
All subsidies are factored into flat prices when they are launched as BTO flats.
In order to prevent excessive windfall gains when owners sell their flats on the open market, HDB said it will claw back the additional subsidies.
This also means that owners who choose to not sell their flats will not get their subsidies clawed back.
Owners will also be subject to a 10-year minimum occupation period (MOP), up from the current 5 years, before they can sell it on the open market.
This comes on top of the 71 months – just under 6 years – waiting time for these flats, as the project is estimated to be completed in the second quarter of 2028.
Before the Covid-19 pandemic, the waiting time for a standard BTO flat was about 3-4 years.
This means owners will likely only be able to resell these flats sometime in 2038.
The pool of resale buyers of these Rochor flats will also be limited to households who earn not more than S$14,000 a month, with at least one applicant a Singapore citizen.
The PLH model – to ensure that new public housing in prime, central locations will remain affordable, accessible and inclusive for Singaporeans – comes after almost a year of public consultations.
At least one prime location housing project will be launched each year, although proportion of flats will differ year on year to ensure a diverse supply across estates.
Seniors can have their pick in this sales exercise, with 68 2-room flexi flats on offer in a second “vertical kampung” in the non-mature estate of Choa Chu Kang.
The Heart of Yew Tee is an integrated development and houses Chua Chu Kang’s first hawker centre, a polyclinic, a community club, a kidney dialysis centre, a community plaza and retail shops.
Flats will come with elderly-friendly fittings and smart distribution boards.
Prices start from S$72,000 and only seniors aged 55 and above can apply for these flats.
The project sits adjacent to YewTee Point shopping mall, which has a sheltered linkway to Yew Tee MRT Station.
The estimated completion date is in the first quarter of 2026, so buyers have to wait about 4 years for their homes.
It is Singapore’s third integrated development with housing for seniors, after Kampung Admiralty in Woodlands and the community care apartments, a type of assisted living public housing, in Harmony Village @ Bukit Batok.
In the current November launch, the only other BTO project in a mature estate is Kent Heights in Kallang/Whampoa.
A total of 430 2-room flexi and 4-room flats are on offer, on a site along Owen Road, next to the Central Expressway (CTE).
Prices start from S$192,000 for a 2-room flexi flat and S$511,000 for a 4-room flat.
The estimated completion date is in the fourth quarter of 2026, which means buyers will have to wait more than 4 years for them to be ready.
There are 2 BTO projects in the non-mature estate of Hougang.
The bigger project is Hougang Olive, where 390 4-room and 5-room flats are on offer on a site by Hougang Avenue 3, Hougang Street 12 and Hougang Street 13.
Prices start from S$308,000 for a 4-room flat and S$416,000 for a 5-room unit.
The waiting time is just under 3 years, as these flats are slated for completion in the first quarter of 2025, making these one of the fastest projects to be ready in this launch.
The smaller project, which sits on an adjacent site, is Tanjong Tree Residences @ Hougang, where 300 4-room and 5-room units are on offer.
Prices start from S$318,000 for a 4-room flat and S$419,000 for a 5-room unit.
These flats are estimated to be ready in just under 4 years, in the second quarter of 2026.
In the non-mature estate of Jurong West, 221 3-room and 4-room flats are on offer at Nanyang Opal, on a site bounded by Jurong West Street 92 and 93.
Prices start from S$173,000 for a 3-room flat and S$264,000 for a 4-room flat, making them the most affordable in this sales exercise.
These flats are estimated to be completed in the fourth quarter of 2025, so buyers have to wait around 3.5 years for them.
Tengah, Singapore’s newest town, has 2 BTO projects in the Park district.
The bigger project is Parc Clover @ Tengah, where 1,124 2-room flexi, 3-room, 4-room and 5-room flats are on offer.
Prices start from S$119,000 for a 2-room flexi, S$312,000 for a 4-room and S$428,000 for a 5-room flat.
The smaller project is Parc Glen @ Tengah, where 2-room flexi, 3-room, 4-room and 5-room flats are on offer.
Prices start from S$120,000 for a 2-room flexi, S$319,000 for a 4-room and S$436,000 for a 5-room flat.
Flats in both Tengah projects are slated for completion in the fourth quarter of 2024, with a waiting time of around 2.5 years, making them among the fastest to be completed in this launch.
The 1,798 units offered under the SBF scheme are spread across mature and non-mature estates such as Bishan, Bukit Merah, Clementi, Queenstown and Punggol.
About 31 per cent of them are already completed, while the rest are in various stages of construction.
These flats are expected to be popular among buyers as the completion date of BTO projects have been stretched longer due to the manpower shortage and supply disruption in the construction industry arising from the Covid-19 pandemic.
Applications for the flats close next Tuesday (Nov 23) at 11.59 pm on the HDB flat portal. The flats will be allocated through balloting.
Next February, about 3,900 flats will be offered in towns such as Geylang, Kallang/Whampoa, Tengah and Yishun.
Another 5,200 to 5,700 flats will be offered in towns such as Bukit Merah, Jurong West, Queenstown, Tampines, Toa Payoh and Yishun in May next year.
The exact location of these projects and the number of flats at each site will be released only 3 months ahead of the launch.