Located along Telok Blangah Drive, 430 applicants vied for the May 2021 Telok Blangah Beacon BTO units, with 4-room flats priced from $602,000 excluding grants. Source: HDB
The four-room Build-To-Order (BTO) flats in Bukit Merah received overwhelming demand from homebuyers even as the units are the most expensive in last month’s sales exercise.
Located within the mature estate of Bukit Merah, Telok Blangah Beacon received 43.3 applicants for each four-room flat, the highest application rate for such units in recent years.
Lee Sze Teck, Director of Research at Huttons Asia, noted that “close to 30 first-timer applicants and 400 second-timer applicants are vying for the limited supply of flats”.
The 175-unit project is situated near Telok Blangah MRT station, with the three-room flats priced from $419,000 (excluding grants), while prices for the four-room units started at $602,000 (excluding grants). It is the first BTO project within the area since 2013, when Telok Blangah Parcview was launched.
Lee attributed the high demand to the project’s central location in a mature estate. Telok Blangah Beacon is also closest to the future Greater Southern Waterfront.
“Even paying $710,000 and a wait of more than five years is no deterrent to buyers who desire the location and the potential upside of the transformation in years to come,” he said.
Last month’s May 2021 BTO sales exercise saw HDB launch 3,879 BTO flats across four housing projects in four estates: Bukit Merah, Geylang, Tengah, and Woodlands.
It also launched 2,494 flats under its Sale of Balance Flats (SBF) exercise. Lee noted that May’s SBF exercise saw a slightly higher application rate compared to the previous exercise in November last year.
“This is probably due to the delays in completion of BTO flats and the cash-over-valuation (COV) that buyers of resale flats have to fork out since the circuit breaker,” said Lee.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org