‘Moderate to healthy’ demand for Rochor BTO flats under new prime area model: Analysts

FIRST-MOVER ADVANTAGE

Ms Christine Sun, senior vp of analysis and analytics at OrangeTee & Tie, instructed CNA the subscription charge for a four-room flat in Rochor was “moderate to healthy”.This charge could have been impacted by the lengthy completion interval of 71 months – almost six years – and the longer MOP.Some candidates just like the “prestige of living” close to the downtown core, and might want to personal flats that may “potentially enjoy good price appreciation in the long term”.“Others may like the novelty of the whole PLH model and wish to have the first-mover advantage of being the pioneer batch to own a PLH flat,” she added.Mr Lee Sze Teck, senior director of analysis at Huttons Asia, mentioned the “potential huge gains” upon resale could “far outweigh the restrictions” for those that utilized for a flat in Rochor.“As the policies for PLH flats may be reviewed in the future to stay relevant, some applicants may have applied to get a foot in first in case the policies are tightened,” Mr Lee instructed CNA.“Future PLH flats will likely stay popular as buying a property is about location. A prime location will trump other factors.”Four-room BTO flats in Rochor drew enormous demand from second-timer households, with 104.7 purposes per flat. In distinction, the appliance charge from first-timer candidates for such flats was 5.3.Purchasing a non-PLH flat with a shorter building time and MOP could also be a “better option” for first-time {couples} of their late 20s who need to see capital achieve from their flat, with a view to upgrading in future, mentioned Mr Thomas Tan, chief working officer of ERA Singapore.“With the policy restrictions, PLH may well be more suited for second-timers (late 30s/early 40s) who will purchase it with a view to retire, with the convenience of a central location. This is probably the reason why the second-timer subscription rates are much higher,” he added.