Now that we are in November we are back in the BTO season. This time, an estimated 4,480 units will be launched in eight projects in Choa Chu Kang, Hougang, Jurong West, Kallang / Whampoa, Rochor and Tengah.
Following last week’s announcement, we will also launch the first apartments in Prime Location Public Housing (PLH) in this BTO sales exercise in November 2021.
While we know the exact locations of these projects about three months before launch (or just a few weeks in the case of the Rochor BTO), we only know the exact starting prices during the launch itself.
Still, SRX has increased the estimated price ranges of 3-bedroom, 4-bedroom, and 5-bedroom apartments for the BTO launch in November 2021 based on the nearby resale transactions and introductory prices from recent BTO launches.
| Hougang | Jurong West | Kallang / Whampoa | Rochor | center | |
| 3 rooms | $ 200,000- $ 260,000 | $ 400,000- $ 500,000 | $ 200,000- $ 230,000 | ||
| 4 rooms | $ 320,000- $ 370,000 | $ 280,000- $ 390,000 | $ 500,000- $ 660,000 | $ 600,000- $ 750,000 | $ 280,000- $ 350,000 |
| 5 rooms | $ 390,000- $ 480,000 | $ 380,000- $ 480,000 |
Source: SRX. These estimates take into account the age and location of the property. If a launch is closer to an MRI or commercial development, it is likely to be more expensive.
On the basis of these price forecasts, we can also estimate the down payment and the expected monthly payments. This is based on the following assumptions:
- An HDB loan is taken out which maximizes the 90 percent loan-to-value
- The credit period is a maximum of 25 years, with a current interest rate of 2.6 percent
- There is no other home loan to use
To illustrate, we use the median of the estimated price range. So for a 4-bedroom apartment in Rochor BTO, let’s assume the price is $ 675,000. We also don’t consider CPF grants.
Based on all of these, we use a mortgage calculator to make these estimates.
Without further ado, here’s an estimate of how much you will have to spend each month should you manage to get an apartment in your preferred location this BTO season.
Hougang
Take a look at our detailed review of the Hougang BTO here.
Jurong West
| Flat type | Median price | Loan amount (90 percent) | Minimum deposit 10 percent) | Estimated monthly payment |
| 3 rooms | $ 230,000 | $ 207,000 | $ 23,000 | $ 939.10 |
| 4 rooms | $ 335,000 | $ 301,500 | $ 33,500 | $ 1,367.81 |
Check out our in-depth review of the Jurong West BTO here.
Kallang / Whampoa
| Flat type | Median price | Loan amount (90 percent) | Minimum deposit 10 percent) | Estimated monthly payment |
| 4 rooms | $ 580,000 | $ 522,000 | $ 58,000 | $ 2,368.15 |
SRX does not publish price forecasts for the 2-room Flexi apartments.
At the last launch in Kallang / Whampoa for 2-bedroom flexi apartments during the BTO in February 2021, prices ranged from $ 117,000 to $ 136,000 for the Type 1 apartments and $ 139,000 to $ 182,000 for the Type 1 apartments 2. However, these apartments were equipped with short 40-year leases.
Assuming that the 2-bedroom flexi apartments offered this time also have short leases, we forecast a price range of $ 120,000 to $ 180,000. Note that there is no mortgage finance for short-term rentals. So you have to pay for it in cash and / or CPF savings.
Further information on the eligibility criteria for HDB loans can be found here.
And read our detailed test on the Kallang / Whampoa BTO here.
Rochor
| Flat type | Median price | Loan amount (90 percent) | Minimum deposit 10 percent) | Estimated monthly payment |
| 3 rooms | $ 450,000 | $ 405,000 | $ 45,000 | $ 1,837.36 |
| 4 rooms | $ 675,000 | $ 607,500 | $ 67,500 | $ 2,756.04 |
View our detailed review of the Rochor BTO here.
center
View our detailed report on the Tengah BTO here.
Choa Chu Kang
Since the Choa Chu Kang BTO is designed as a senior citizens’ residence, only 2-room flexi apartments are offered.
When it was last launched in the settlement (in August 2020), the starting price for 2-room flexi apartments was $ 99,000. So we think the price tag for this project could be anywhere from $ 99,000 to $ 139,000.
However, since the application for the vertical Kampung project only takes place from the age of 55, the apartments will most likely be rented out at short notice. It also means that there is no mortgage financing available for these apartments and you will have to pay for them with cash and / or CPF savings.
Take a look at our detailed review of the Choa Chu Kang BTO here.
Which BTO project in November 2021 is the cheapest?
Based on estimated prices, the Jurong West BTO and Tengah BTO are likely to be the cheapest on this November 2021 sales launch. Since the prices here are at the lower end of the spectrum, the monthly rates also become cheaper.
For example, we estimate that monthly rates for four-bedroom apartments in these settlements will be between $ 1,200 and $ 1,400. In comparison, the monthly rates for the same type of apartment in the Rochor BTO and Kallang / Whampoa BTO are estimated at around USD 2,300 to 2,800.
Whichever project you are aiming for, you should always keep in mind that you should only purchase a property within the limits of your possibilities.
And don’t just rely on the 30 percent Mortgage Servicing Ratio (MSR) to help keep you from being over-indebted. Check your finances and make sure you have enough cash and CPF savings to cover your monthly payments, just in case (Touch Wood) loses your income.
This article was first published in 99.co
