DEMAND FOR PLH FLATS
Based on HDB’s data, three-room PLH flats in the nine projects have been priced between S$335,000 and S$515,000, while four-room PLH flats have been priced between S$488,000 and S$737,000.
In contrast, the comparable three-room and four-room BTO flats in mature housing estates have been priced between S$289,000 and S$488,000 and S$381,000 and S$695,000, respectively.
You can see from the data that PLH flats are priced higher than comparable BTO flats in mature housing estates. Keep in mind that PLH flats come with additional subsidies, on top of those currently provided for all BTO flats. Without such subsidies, those flats would be way more expensive, and families that aspire to live in the city centre might be crowded out.
The first PLH project, River Peaks I and II in Rochor, was launched in November 2021. The project comprised 280 three-room flats and 680 four-room flats. There were 867 applicants for the three-room flats and 6,976 for the four-room units, putting the application rate at 3.1 times and 10.3 times, respectively. The application rates by first-timers were lower at 1.1 times and 5.3 times, respectively.
Since then, eight other PLH sites have been rolled out, including King George’s Heights, Bukit Merah Ridge, Ghim Moh Ascent, Alexandra Vale, and Havelock Hillside. Ulu Pandan Banks, Ghim Moh Natura, and Kallang Horizon are the three projects launched in the latest November 2022 BTO exercise.
In all, 8,301 PLH units have been launched under the new model, accounting for 85 per cent of the total 9,804 of three- and four-room BTO units launched in mature estates during the same period.
Does this mean that the demand is “lacklustre”, which implies, to some extent, falling below expectation? Or is this simply a situation where the supply of PLH is catching up with demand?
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