Singapore, 28 Sep 2022 Since the first launch in November last year, application rates for Build-to-Order (BTO) flats in prime areas have slowed.
There have been five developments under the Prime Location Public Housing (PLH) model, which will see Housing and Development Board (HDB) flats built in central regions.
Ms Christine Sun, senior vice president of research and analytics at OrangeTee and Tie said some buyers may be deterred by the more stringent selling criteria for PLH flats, as well as the clawback of the future sales proceeds to recover the subsidies given.
The pool of buyers may have shrunk – eligible and interested buyers may have already made purchases in earlier BTO exercises, she added.
Ms Sun said there will always be demand for PLH flats given their locations and "lack of supply of housing" in Singapore.
"The good sales take-up of previous projects indicates that many Singaporeans do not mind the stringent selling criteria and longer MOP of PLH model flats,” she added.
The clawback of subsidies and stringent selling criteria may also help to moderate the flats’ future resale prices to some extent, said Ms Sun. This will help to ensure that people who purchase PLH flats in certain mature estates are buying for their own occupation and not for investment purposes.