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SINGAPORE: Resale flat price growth could slow down with the building of new yet-to-launch flats in sites with high development potential, said industry players.

Hundreds of Build-To-Order (BTO) flats that have not yet been announced for sale are currently being built in Clementi, Toa Payoh and Bukit Merah.

Market watchers told Â鶹´«Ã½ that these upcoming Housing and Development Board (HDB) projects could also ease demand for resale public flats. 

EASING DEMAND

HDB has been working closely with government agencies to make project sites available earlier, and starting construction works many months ahead of the launch, said the public housing authority’s CEO Tan Meng Dui in October. 

The move to “build before order� could help to allay concerns over supply shortages induced by the COVID-19 pandemic, said observers. 

This comes as resale prices in some of these public housing areas have hit the million-dollar mark. 

Ms Christine Sun, chief researcher and strategist at real estate firm OrangeTee Group, said the construction of BTO flats in advance “gives assurance to buyers that there'll be sufficient supply of homes in the future� to meet demand.  

“It also shows that the government is ready to release additional land for housing if necessary, and with most land supply, that also means that it can contribute to a slower pace of price growth in the long term,� she added. 

There is currently still high demand for housing, said Ms Sun, adding: “But if they are able to release more and more land in the future, then we will be able to see a bigger impact.�

Analysts believe these projects will likely be categorised as Plus or Prime flats under the new public housing framework. 

Under this system, BTO projects are classed Standard, Plus or Prime, with different resale conditions attached to each housing type.

Plus flats are in choice locations within each region, such as near MRT stations and town centres, while Prime flats are in choicest and most central locations. 

SHORTER WAITING TIME

A total of 753 flats are being built at Clementi, near the town's central area and MRT station. The project is expected to be completed by 2029.

At Toa Payoh Rise, another 741 units will also be ready by then. The development is located near Caldecott and Braddell MRT stations.

Meanwhile, the project in Bukit Merah will have 498 units, and is situated near Redhill MRT station. It is built next to Alexandra Peaks, a Prime project slated for completion by 2029.

It is unclear if these projects will be categorised as shorter waiting time flats with waiting times of less than three years.

But analysts said the early construction of these upcoming housing projects would mean a much faster turnaround time.

“In the past, HDB will build BTO projects ahead of the launch to provide shorter waiting time flats. Usually, these flats are located in the more suburban areas, further away from the city,� said Mr Nicholas Mak, chief research officer at property search portal Mogul.sg.

“Right now, (some of these upcoming projects) are at the city fringe. They are all very well-located, about 300m to 400m from their nearest MRT stations.

“Perhaps HDB is trying out a new method of launching BTO flats by providing flats, regardless of whether they are in the suburban areas or the city fringe, with shorter waiting time,� he added.

More than 2,800 flats with a shorter waiting time were launched this year alone. This is in line with the target of rolling out between 2,000 and 3,000 of such flats per year by 2025.