Over 4,300 BTO flats for sale in Yishun, Punggol , Latest Singapore News - The New Paper
Singapore

Over 4,300 BTO flats for sale in Yishun, Punggol

This article is more than 12 months old

To boost retirement savings, buyers taking HDB loan can now leave up to $20,000 in CPF Ordinary Account

Would-be home buyers have over 5,100 flats to choose from in the latest Housing Board sales exercise launched yesterday.

The flats offered for sale are 4,375 Build-To-Order (BTO) flats in Yishun and a new waterfront district in Punggol, and 726 Re-offer of Balance Flats (ROF) units - flats that remain unsold after several exercises.

Prices, excluding grants for the new flats, range from $75,000 for a two-room flexi flat in Yishun to more than $411,000 for a three-generation flat in Punggol.

The Punggol flats, in two projects called Punggol Point Cove and Punggol Point Woods, are in a new waterfront district the HDB launched on Sunday. They are bounded by New Punggol Road and Punggol Way.

The BTO projects in Yishun are Melody Spring@Yishun, bounded by Yishun Avenue 8 and Yishun Street 42, and Yishun Glen, bounded by Yishun Ring Road, Yishun Street 31 and Yishun Avenue 6.

The balance flats comprise 67 two-room flexi units, 171 three-room units, 294 four-room units, 152 five-room units, 33 three-generation flats, and nine executive flats in various towns.

About 58 per cent of these are completed, said the HDB.

CPF CHANGES TO HDB LOANS

In tandem with the launch, HDB announced that buyers taking an HDB loan will no longer need to drain their Central Provident Fund (CPF) Ordinary Accounts (OA) first - a move that encourages sufficient retirement savings.

They can now keep up to $20,000 in their OA. The changes apply to those who have yet to collect the keys to their new flats, as well as new resale applicants.

Previously, buyers had to use all the funds in their OA before taking on an HDB loan while those who take private bank loans can leave some funds in their CPF accounts.

Said the HDB: "The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left unutilised."

For example, someone who leaves $20,000 in his OA can earn $32,772 over 20 years, the recommended tenure for a housing loan. The OA interest rate is now 2.5 per cent a year. This amount could rise if the funds are moved to the Special Account, which could earn up to 5 per cent.

Unlike the OA, however, which can be used to pay off a mortgage, the SA can be used only for retirement.

Observers welcomed the move which encourages buyers to ensure sufficient retirement funds even as they invest in a large asset like a home.

"People have been conditioned to think of their OA as their housing budget, which has probably led some buyers to choose more expensive housing than they really need or can comfortably afford," Singapore University of Social Sciences economist Walter Theseira said.

"We should view this policy change in the context of nudging people to realise that they don't have to exhaust their OA for housing if they don't want to."

POPULAR PUNGGOL

On the latest sales exercise, ERA Realty key executive officer Eugene Lim said he expects the Punggol flats to be more popular despite the higher prices, as they are located near the upcoming Punggol Coast MRT station and the Punggol Digital District.

Some flats have sea views and are expected to appeal to young families, he added.

The Yishun flats are farther away from Yishun station, but the comparatively lower prices should help make them attractive, said Mr Lim.

PropNex Realty chief executive Ismail Gafoor expects subscription rates for Punggol flats to exceed three to four times the supply, and an overall application rate of two to 2.3 for the entire exercise. This, he said, is due to the healthy number of units available across the different mix of flats.

As of 5pm yesterday, the application rate for three-room and larger flats was 0.5. Five-room and three-generation flats in Punggol were already oversubscribed at a rate of 1.1, or 416 applications for 386 units.

The rate was 0.3 for two-room flexi flats, and 1.4 for the ROF units.

Applications close next Monday.

The next BTO launch will take place in November, where the HDB will offer about 3,800 flats in Sembawang, Sengkang, Tampines, Tengah and Yishun.

FOR MORE, READ THE STRAITS TIMES TODAY

Property