Housing Demand Surges Amidst Project Subsidies

Prime Projects Attract Over 12,000 Applications Despite Higher Clawback Rates

New housing projects are seeing robust interest from buyers, with over 12,000 applications received for the latest Prime developments. This strong demand persists even with potentially higher subsidy clawback rates.

Toa Payoh Ascent Leads Prime Project Interest

Toa Payoh Ascent, offering 741 flats, has garnered significant attention with nearly 5,900 applicants. This concentration of interest, representing almost half of all applications for Prime projects, is attributed to its strategic central location and nearness to Caldecott MRT station. Proximity to schools like CHIJ Primary and Secondary, and Raffles Girls’ School, further bolsters its appeal.

“We think applicants could also be attracted to the future development plans in the Toa Payoh Rise area, where more housing and mixed-use projects may potentially come on,” said Kelvin Fong, PropNex CEO.

Alexandra and Clementi Projects Show Strong Uptake

In Bukit Merah, Alexandra Peaks and Alexandra Vista saw over 3,300 applicants for their 1,107 units. Meanwhile, Clementi Emerald, which features the highest subsidy clawback rate at 12 percent, received more than 3,100 applications for its 753 units, according to Huttons Asia.

The demand for Clementi Emerald is likely fueled by its location within the established Clementi estate, its proximity to the MRT station, and a shorter waiting period of under three years. “That said, “it is possible that applications could have been higher if not for the 12 per cent subsidy recovery rate – the highest clawback rate for Prime BTO projects so far,” said Kelvin Fong.

Standard Project Popularity Driven by Location and Flexibility

Among Standard projects, Simei Symphony in Tampines has emerged as the most popular. The project’s 100 five-room flats attracted approximately eight first-time applicants per unit. Its 140 four-room flats saw about six first-time applicants for each unit.

Lee Sze Teck, Huttons Asia’s senior director of data analytics, attributes these high application rates to pent-up demand, noting it’s the first new public housing in Simei in over a decade. Additionally, the Standard classification offers greater flexibility regarding resale restrictions and a shorter minimum occupation period.

The overall robust interest in these new housing projects aligns with a broader trend in Singapore’s property market. In March 2024, the Housing Development Board (HDB) launched 6,797 flats, underscoring consistent demand for public housing options. Channel News Asia