Okay, so we did our research on HDB’s new Open reserving of residences platform to see the way it compares to buying a flat from the resale marketplace. And we wanted to offer you an analysis as to the merits of every method however, frankly, there’s almost not anything about Open booking of flats that actually advantages homebuyers, so the short answer to the title question is a large fats NO. however in case you nevertheless want to discover why, study on:
what is Open reserving of residences?
First, a brief history: similar to how condominium developers puts up yet-to-be-built tasks on the market, the Housing & improvement Board (HDB) launches lots of new residences each year that’ll take a mean of 3.5 years to finish. The HDB first sells these flats via wildly famous build-to-Order (BTO) income physical activities, which consist of new HDB tasks in 2-five locations. in the course of these sporting activities, BTO flats are normally oversubscribed—after a vote casting and selection procedure just a few of them are left over (specially due to a lack of demand for a particular location or that the ethnic quota is maxed out). Please see also the new development Mountbatten Residences which is by Bukit Sembawang Estates.
these leftover flats, additionally referred to as ‘stability residences’, are then pooled together with finished apartments repossessed or bought again at once to HDB. every time a BTO release comes around, a concurrent Sale of stability residences (SBF) workout lets candidates poll for these leftover apartments.
Leftover residences from the SBF used to go onto a 3rd poll exercising known as the Re-offer of balance apartments (ROF), till the latter turned into scrapped in March 2020 to just let candidates e-book the rattling apartments on a first-come-first-serve basis through its online Open booking of flats portal, which is now open.
Previously, people who need to get a flat direct via the ROF as opposed to the resale market needed to look ahead to a particular twice-a-year window to view to be had residences and practice, whereas the Open booking of flats now lets customers to apply for a brand new flat all 12 months round.
consistent with Minister for national improvement Lawrence Wong, the Open reserving of residences lets in the sooner launch of more balance gadgets to “permit domestic-seekers with pressing desires to get entry to apartments extra fast”.
However, in truth, there’s virtually no need to put in force a ballot device for leftover HDB apartments that can be likened to crumbs on a dinner plate or ‘reduced to clear’ gadgets in a grocery store.
The ‘getting access to residences more fast’ argument is also a relatively doubtful one, as applications via Open reserving of apartments entail a waiting duration (to sign the Agreemend for lease) of up until four months from your flat selection date. then again, in case you buy a resale HDB flat, the complete process from entering into an choice to purchase (OTP) to key series can be accomplished and dusted in two months.
And here’s the kicker: even though the flat is a completed unit, HDB does not allow any viewing of the flat in man or woman. At excellent, HDB may include photographs of the unit. examine that to shopping for a resale flat, where the buyer can organise more than one viewings to suss out the professionals and cons of each unit.
hence, shopping for a flat from the HDB Open booking of flats gadget is like shopping for a leftover watermelon at NTUC Fairprice wherein there’s an enforced social distancing among you and the said watermelon.
Aiyo, why lidat say Open reserving of residences until so bad aspect?
In quick, the Open booking of residences serves HDB extra than it does home consumers—it’s HDB’s closing motel to clean its first rate and repossessed gadgets.
permit’s say you don’t thoughts the probably longer ready time, and also you’re ok with not viewing the unit due to the fact it is both below construction or you come what may agree with that HDB has completed all of the vital assessments for the unit to be in saleable situation.
We looked at the selection of flats at the day the portal opened on 25 March 2020, and tallied the apartments to be had for candidates. right here’s what we determined:
hdb open reserving of apartments records 2020. All proper, we get you, but is Open booking of flats cheaper than shopping for HDB resale?
ultimately, we desired to discover whether or not a balance flat from the Open reserving of flats portal is less expensive than recently transacted HDB resale flats with the identical area and traits (e.g. floor stage and size).
HDB publishes the charge of all devices at the Open booking of residences portal. For the purpose of evaluation, permit’s take a look at a 3-room, seven-hundred squarefeet flat in Clementi at 6 Holland close, where the Open reserving of residences portal has listed a (in all likelihood repossessed) thirteenth floor unit at $319,500.
Now permit’s head to 99.co and examine transaction information for comparable units in the equal block (there are for the identical unit type and place within the second 1/2 of 2019). comparing the Open reserving vs Resale transaction prices for studios in the same block, we can see that already-completed flats on the Open booking platform can be round 5% inexpensive than if the same unit have been to be indexed in the open market.
undergo in mind that this is a completely rough guage and the unit is typically restored to a circumstance with a view to value critical $$$ to makeover (see beneath image), however the bargain is a rather fair valuation for a unit that has been repossessed. In this situation, HDB is pretty much within the equal role as a financial institution who has foreclosed a domestic; it just wants to get the assets off its books ASAP and is inclined to offload it at a reduction. The handiest difference is that HDB sells the unit at a fixed fee while the financial institution units a Reserve fee and takes the property to public sale.
alternatively, for financial institution mortgagee income of personal property, the potential bidder can at least view the residence in character instead counting on images!
hdb open booking of apartments interior situation
HDB even is going to the quantity of hacking away all present tiles before putting a flat on the Open reserving platform. madness. supply: HDB
For BTO (i.e. uncompleted) flats, the devices listed at the Open booking of flats platform have a tendency to be ineligible for one or more ethnic organizations. Take as an example three- and 4-room residences in Geylang’s Pine Vista and Dakota Breeze BTO undertaking that have been released returned in may 2017; best those who belong to the Malay ethnic institution are eligible to use for the remainder gadgets listed, due to the fact the chinese and Indian quota has been maxed out.
For these specific uncompleted BTO flats, it’s far really worth not anything they are on average 7 to 10% greater steeply-priced than the preliminary BTO release price. There are two key reasons for this price premium: there may be a shorter ready time to crowning glory, coupled with the increase in overall HDB resale expenses over time.
sufficient about the Open reserving of residences bashing; it appears there’s a plus factor in the end: If the ethnic quota allows, the applicant can get admission to an earlier BTO project they may have neglected.
anyways, in case you ask us, we’d pick out HDB resale any day.