It seems the best way to mitigate the so called "lottery effect" is to price the upcoming HDB BTOs close to the resale pricing of the surrounding flats of prime districts. Higher construction costs due to the Covid pandemic could also have caused prices to increase (click to read the article below).
Only 175 BTO units comprising 3-room and 4-room flat types will be up for grabs as part of the May 2021 Telok Blangah Beacon Bukit Merah BTO launch. This means that buyers can expect very heavy competition.
5-room flats will not be offered. As such, larger families or buyers planning on one may want to consider the other May 2021 BTO launches at Tengah and Woodlands instead.
Telok Blangah Mall, Telok Blangah Market, and Telok Blangah Food Center are all just a short walk away from the Telok Blangah Beacon Bukit Merah May 2021 BTO flats. Future Telok Blangah Beacon Bukit Merah BTO residents can take a 15-minute bus ride to VivoCity to enjoy endless retail and dining options. Alternatively, Alexandra Retail Centre is a 15-minute walk away, where families can access a supermarket, pharmacies, bakeries, and other retail amenities.
As the Greater Southern Waterfront takes shape, flat owners in the area could potentially benefit from significant capital appreciation. Over the past year, resale prices for 3-room and 4-room flats went for as high as $375,000 and $478,000 respectively. The resale flat prices for this Bukit Merah BTO launch would probably exceed the above prices.
Kiwi Lim from Huttons Asia believe that if 4 room HDB flats in Telok Blangah is being priced around $655k, the prices of the HDB public housing units on the site of the current Keppel Club which is right in the Greater Southern Waterfront region may be priced much higher. He estimate that future HDB BTO flats at the former Keppel Club may possibly see prices above $750k for a 4-room BTO flat.
Kiwi believe prices of these upcoming BTOs near the Greater Southern Waterfront when compared to another iconic HDB project with towering 50-storey sky gardens overlooking the whole of Singapore situated at the doorstep to The Greater Southern Waterfront - The Pinnacle at Duxton which also enjoy the exclusivity of being right in the city at Tanjong Pagar look very very attractively priced (see below).
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