5000 new build to order flats for Young Couples and First Time Home Buyers in Singapore
HDB launched two new BTO projects, Fernvale Palms in Sengkang and Boon Lay Meadow in Jurong West.
There are a total of 1,200 standard flats on offer, comprising 240 units of 2-room, 396 units of 3-room, 512 units of 4-room and 52 units of 5-room flats. These 1,200 new BTO flats form part of the 5,000 new flat supply which Minister Mah Bow Tan announced on 1 Oct 09. They will offer greater choice and certainty for young couples looking for their first homes. Eligible first-timers with an average monthly household income of $5,000 or less can also apply for the Additional CPF Housing Grant (AHG) of up to $40,000.
FERNVALE PALMS
Fernvale Palms is a standard contract offering a total of 495 units. The flat supply comprises 96 units of 3-room, 347 units of 4-room and 52 units of 5-room flats.
Sengkang today is an attractive housing estate with developed transportation networks and supporting amenities. Situated along Sengkang West Way, Fernvale Palms is conveniently located near two LRT stations, Fernvale and Thanggam, which connect to the Sengkang MRT station and bus interchange. The Tampines Expressway is also just a short drive away.
Sengkang is served by its own Community Club, polyclinic and shopping mall (Compass Point). Residents’ daily needs are met by the wet market, supermarket, and food court at Fernvale Point, as well as eateries located at Jalan Kayu. There are various educational institutions in the vicinity, such as Fernvale Primary, Anchor Green Primary, Nan Chiau Primary, Pei Hwa Secondary School and Nan Chiau High School.
BOON LAY MEADOW
Boon Lay Meadow is a standard contract offering a total of 705 units. The flat supply comprises 240 units of 2-room, 300 units of 3-room and 165 units of 4-room flats.
Boon Lay Meadow is situated within the established Jurong West estate. Conveniently located along Jurong West Avenue 2, Boon Lay Meadow is served by two MRT stations, Boon Lay and Lakeside. The Pan-Island Expressway is also a short 5 minute drive away.
Residents are served by such shopping facilities as the nearby Boon Lay Shopping Centre, a neighbourhood centre which houses a market and hawker centre, and commercial shops. There are also educational institutions in the vicinity such as Corporation Primary, Boon Lay Garden Primary, River Valley High School and Boon Lay Secondary School.
PRICING OF NEW FLATS AT FERNVALE PALMS & BOON LAY MEADOW
To ensure that public housing is affordable for first-time homebuyers, new HDB flats are priced below their equivalent market prices The market prices take into account the prices of resale flats in the area, with adjustments made for factors such as location, flat attributes, project design and prevailing market conditions., as determined by professional valuers.
Selling prices for the flats range from:
Fernvale Palms
· $129,000 to $163,000 for a 3-room flat;
· $214,000 to $262,000 for a 4-room flat; and
· $282,000 to $340,000 for a 5-room flat
Boon Lay Meadow
· $86,000 to $103,000 for a 2-room flat;
· $138,000 to $173,000 for a 3-room flat; and
· $223,000 to $266,000 for a 4-room flat
Pricing details and resale comparables for Fernvale Palms and Boon Lay Meadow are in Tables 1a and 1b of Annexes A and B.
ADDITIONAL CPF HOUSING GRANT & AFFORDABILITY OF THE PROJECTS
In addition to enjoying a generous market subsidy on the selling price, eligible first-timers with an average monthly household income of $5,000 or less can also apply for the Additional CPF Housing Grant (AHG) of up to $40,000. The AHG can be used to offset the initial down-payment.
Based on the income of flat applicants in the first half of this year, it is expected that most households will not need to use cash to meet their monthly mortgage payments. For example, a family with a household income of $3,900 buying a 4-room unit priced at $240,000 in Fernvale Palms will need to pay a monthly mortgage instalment of about $865. This can be paid fully using their monthly CPF contributions.
It is expected that first-time flat buyers will need to use between 18% to 24% of their monthly household income to meet their monthly loan commitments for these two projects. This is well below the 30% international benchmark for affordable housing. Further details of the projects and pricing are can be found in Annexes A and B.
UPCOMING FLAT SUPPLY
Flat buyers can look forward to more BTO launches over the next two months. In Nov and Dec 09, HDB will be launching six more BTO projects with 4,000 flats. These projects will be located in towns such as Punggol, Bukit Panjang, Sembawang and Dawson. More details will be provided at their launch.
APPLICATION PROCEDURE
Applications for the new flats can be submitted online from 16 Oct 2009 (Friday) to 29 Oct 2009 (Thursday).
Submission of Application
Households interested in buying a flat in Fernvale Palms or Boon Lay Meadow can submit their application online at HDB’s InfoWEB at www.hdb.gov.sg between 16 October 2009 (Friday) to 29 Oct 2009 (Thursday). The administrative fee of $10 is payable by cashcard or credit card (Master Card / Visa). Those without Internet access can visit HDB Hub or any of HDB’s Branch Offices to submit their application via the e-Stations or Internet PCs that are available for use.
Each household can submit only one application and must indicate the development (i.e. Fernvale Palms or Boon Lay Meadow), and the flat type (i.e. 2-room, 3-room, 4-room or 5-room) that they are applying for.
Eligibility Conditions
The monthly household income ceiling for the purchase of the 2-room, 3-room and 4 & 5-room flats is at $2,000, $3,000 and $8,000 respectively. Applicants must also satisfy the other eligibility conditions such as citizenship, family nucleus and non-ownership of private property.
Additional CPF Housing Grant (AHG)
AHG was first introduced in Mar 2006 to provide extra help for the lower income to become homeowners. The latest review for AHG in Feb 2009 allows for eligible first-timers who are buying a new or resale flat (2-room and bigger flat) and whose average monthly household income is $5,000 and less in the 12 months preceding application to qualify for AHG amount of up to $40,000.
Priority Schemes
Applicants who meet the conditions of the Third Child Priority Scheme (TCPS), Married Child Priority Scheme (MCPS) or Tenants’ Priority Scheme (TPS) (for 2-room and 3-room flat applicants only) may request for priority allocation under these schemes. Applications under the Resettlement/Relocation (REN/RH) and Grassroots Organisation (GRO) Schemes will require recommendations from the appropriate authorities managing the schemes.
Selection of Flats
Upon the close of the application period, HDB will assess the subscription rate before inviting applicants for the selection of new flats. Applicants’ queue position to book a flat will be determined by computer ballot. Applicants will be informed of their queue position in Dec 2009.
The selection exercise will commence in Jan 2010. An option fee of $500, $1,000 or $2,000 is payable upon selection of a 2-room, 3-room or 4 & 5-room flat. This fee may be paid by cash/cheque/NETS.
Selection of flats by the applicants will be subject to availability of flat supply and ethnic quota when their turns are due. They can check the availability of flats on the HDB InfoWeb or via teletext before turning up at the HDB Sales Office on the appointed date for the selection.
With effect from May 2008 BTO exercise, First-timer applicants who reject two chances to select a flat in BTO/BE exercises will have their First-timer priorities removed for a one year period in any HDB’s sales exercise.
After completion of the selection exercise, HDB will assess the take-up rate of the development before deciding whether to proceed to call the building tender for the development.
Signing the Agreement for Lease
Once it is confirmed that the development has met the desired take-up rate and proceed to call tender for the construction of the new flats and, HDB will arrange for the applicants to sign the Agreement for Lease within four months from the date of selection of the flats.
Applicants must pay 10% of the selling price of the flat as downpayment at the time of signing the Agreement for Lease, by CPF and/or cash. First-timer applicants, i.e. married couples as well as those applying under the Fiancé/Fiancée Scheme, can pay the 10% downpayment in two instalments under the Staggered Downpayment Scheme (SDS) if at least one of the partners is aged 30 years or younger. The first 5% will be collected when the applicant signs the Agreement for Lease and the balance 5% when the buyer takes possession of his new flat.
Applicants who intend to take an HDB loan must obtain an HDB Loan Eligibility letter before they exercise the Option To Purchase for the HDB flat by signing the Agreement for Lease. For the applicants who are taking a bank loan, they will have to pay 5% cash payment to HDB. They will also have to obtain a Letter of Offer from the bank before they can exercise the Option To Purchase for the HDB flat.
Applicants who do not sign the Agreement for Lease or reject the flat after selection will have their applications cancelled and the option fee forfeited. If the applicant rejects the flat after signing the Agreement for Lease, the forfeiture will be 5% of the selling price of the flat.
Topics: Boon Lay Meadow, BTO, build to order flats, economic development, Economy, employment, Fernvale Palms, first time buyers, flats, Governance, HDB, housing, Housing Development Board, jobs, Jurong West, Sengkang, Singapore, young couples
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