4-room flat in Greater Southern Waterfront may cost over $700k, 5-room units unlikely

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  • Post last modified:April 24, 2022

Property analysts expect the price of a four-room Housing Board Build-To-Order (BTO) flat in the Greater Southern Waterfront (GSW) to range from $600,000 to more than $700,000.

Three-room units at the Keppel Club site could be priced between $400,000 and $500,000, while five-room units are unlikely to be offered, as the price would be too steep, analysts said.

Around 6,000 HDB flats will be built at the 48ha site, with the first BTO project to be launched for sale within three years, National Development Minister Desmond Lee announced on Tuesday (April 12).

Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, said: “Prices may be higher, as we may need to take into account inflation, especially for projects that are launched a few years down the road.”

Mr Lee Sze Teck, senior director of research at Huttons Asia, said he expects the BTO flats to be heavily oversubscribed, with more than 10 applicants vying for each available unit.

He said: “There are not many public flats that offer unique waterfront living and are close to nature. The location is also very close to major employment nodes like the city centre, Mapletree Business City and one-north, offering residents an opportunity to live closer to work.”

The site is also close to Labrador Park and Telok Blangah MRT stations as well as VivoCity shopping mall, noted ERA Singapore head of research and consultancy Nicholas Mak.

“However, applicants may consider the number of units available, and if there are other similarly attractive projects nearby or in the same BTO exercise, before they apply,” he said.

PropNex Realty head of research and content Wong Siew Ying said she thinks all the HDB flats offered should fall under the prime location public housing (PLH) model due to its location.

Noting how Pinnacle @ Duxton flats have fetched high prices on the resale market, with many sold for over $1 million, she said: “To mitigate the lottery effect, we think the PLH model should be applied on all future BTO projects in GSW.

“It is unlikely that PLH will deter Singaporeans from applying for the upcoming flats on the Keppel Club site.”

Owners of flats under the PLH model are subject to stricter buyer and selling conditions, including a 10-year minimum occupation period and having the additional subsidy clawed back by the Government should they sell the units.

But Ms Sun said some of the flats may not come under the PLH model.

“The Government may set aside some flats as rental units for lower-income families, community care apartments for seniors and some two-room flexi flats, so as to offer more housing options for Singaporeans,” she said.

Ms Sun added that the flats under the PLH model may be priced close or slightly higher than the launch prices of the previous two BTO projects under the model – River Peaks I and II in Rochor and King George’s Heights in Kallang/Whampoa.

A four-room unit was priced between $582,000 and $688,000 for River Peaks I and II, which were launched last November, and between $488,000 and $675,000 for King George’s Heights, launched in February.

In November 2020, Mr Lee said a range of housing types – including two-room flats and rental housing – will be built in upcoming estates in prime locations such as the GSW.

This is to ensure that all public housing estates will have a good mix of Singaporeans, he said.

future housing at keppel club site

Research assistant Amanda Tan, 25, said she was excited to apply for a BTO at GSW after two failed applications in Hougang last year.

“I like that it’s at the waterfront – it would be great to wake up to that view. But I’m worried about the cost of the flat,” she said.

Her current budget is around $500,000, but she said she is willing to stretch it to around $600,000 for a four- or five-room unit.

“If it’s worth it, why not? But I wouldn’t want to live on a low floor. So I’ll have to see what I can afford when the time comes,” she added.

Business development representative Asher Chua, 27, said the prime location was worth the conditions of the PLH model. He applied for a four-room unit at King George’s Heights in February, but did not get a queue number.

He said: “I’ll apply for a BTO (flat) in good locations even if it’s more expensive. I don’t intend to profit from selling it, and I don’t mind staying there for 10 or 20 years.”

source: The Straits Times

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