Will an increase of the income ceiling of the HDB affect other home prices in Singapore? Part 2

The Balance Flats which may took long to complete won’t be able to fill in the needed supply for the HDB flats. The status of the Sale of Balance Flats was always under construction or near completion. The consumers from the HDB flats may not be able to compete and acquire the Sale of Balance flats due to inadequate supply against high demand.

This is the reason that the government wants the consumers for the Sale of Balance Flats exercise to consider purchasing units under the BTO. The government sees offering the BTO as one good way to meet the demand for the Balance Flat. What does this imply? It means that the shortage will be experienced for some time until the BTO projects were completed. For each BTO project, the estimated time of completion is about 2 years. The total time estimate to complete proposed BTO projects is 2 to 4 years.

BTO supply in Singapore

Based on the 22,000 to 25,000 marriages per year, there is an expected increase of 22,000 to 25,000 units’ increase of BTO demand each year. The BTO launched about 5,420 units in the following areas Ang Mo Kio, Jurong East, Jurong West, Punggol, and Sengkang.

There might be not much information to cover all angles about the HDB and BTO housing programs. The HDB website does not provide all data that we may need to make a good perspective of the increases, supply, and demand. However, we can provide you the confirmed DBSS sales launches

Adora Green and Centrale 8 in Tampines

Bedok PH1 at Bedok Reservoir Crescent
Awarded 04 Nov 2010
Won by CEL Development Pte Ltd

Hougang PH2 at Upper Serangoon Road
Awarded 02 Dec 2010
Won by Kwan Hwee Investment Pte Ltd

Yuan Ching Road
Awarded 10 Jan 2011
Won by Hoi Hup Realty Pte Ltd

Clementi Avenue 4
Awarded 10 Mar 2011
Won by EL Development Pte Ltd

Pasir Ris Central / Pasir Ris Drive 1
Awarded 3 Jun 2011
Won by Singxpress Land (Pasir Ris) Pte Ltd and Kay Lim Holdings Pte Ltd
The estimated additional units would at least be 2,000 to 3,000 HDB units. This is based on the 400 to 500 units per project. This might not meet the increasing demand for HDB units. Another price increase is possible but may not still bridge the gap between the supply and demand. Most of the consumers were already complaining about the new $880,000 price. Although it was lowered to $780,000 after a few days, it is still priced quite high for the local consumers.

Related posts:

1. Will an increase of the income ceiling of the HDB affect other home prices in Singapore? Part 1
2. SINGAPORE PROPERTY PRICES CONTINUE TO RISE IN 2010