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by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on PLH flats for May BTO launch

BTO Launches

Minister Desmond Lee mentioned on his Facebook that there will be two PLH model flats to be released in May's BTO launch. Below are our comments for your consideration.

https://www.facebook.com/100044406667199/posts/pfbid02aYxsVzkv5pa23SUnEAh81Ym2N9fypvZZfo7BcJCbH4cdjtgywEifh9m3QNNJpu55l/?d=n 


Assessment of possible sites

Minister Lee mentioned that two BTO projects under the PLH model may be released in the May BTO launch. The two sites could be in Bukit Merah and Queenstown as they are considered prime locations in mature estates near the city centre, CBD and Orchard shopping belt. 

For the BTO in Bukit Merah, the site is zoned under district 3, categorised as RCR or the Rest of Central Region, a proxy for the city fringe area. The BTO site in Queenstown should be under district 10 when we look at URA space, and it is categorised under CCR or Core Central Region, which is a prime district for many luxury homes. It is near Buona Vista MRT station and Holland Village, where many private condos are built.  

Both sites are prime and will be highly popular among buyers. Few new HDB flats are being built in the Bukit Merah area and the Holland Village area. 


Why many PLH flats launched recently

Many Singaporeans are drawn to PLH model flats given their key selling points like prime location, good price appreciation and possibly good design features. There will be good rental potential in the future. 

The popularity of the previous two PLH sites shows that many people are keen to purchase a PLH model flat despite the longer MOP and more stringent selling criteria. Perhaps more supply has been released into the market to meet the growing demand for such flats. 

As prices of private condos and new ECs are still climbing, PLH flats may be a good alternative for the sandwiched class. Some young Singaporeans may feel that they have been priced out of the market, especially the ability to purchase a home in the prime districts. 

Therefore, offering these PLH model flats on a regular basis may help close the income gap among Singaporeans. Going by the current trend,PLH model flats may become a norm, and more of such flats could be released in every launch or at least twice a year. 




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