The Rochor projects – River Peaks I and II – have a waiting time of about six years and are expected to be completed in the second quarter of 2028. Given a longer MOP of 10 years, owners will be able to sell only from the year 2038. Four-room flats are priced from $582,000 upwards.
PLH BTO 4-room Central (Rochor)
Purchase Price $688,000*
*Note: Based on 4-rm BTO price of River Peaks I & II in Nov 2021
Purchase Price $302,000**
**Note: Based on Sun Sails 4-rm BTO price in Nov 2020
Upon MOP, an HDB under the PLH scheme would be eligible to be sold back to the secondary market, with an income ceiling on the potential buyer. Using the maximum prevailing monthly income ceiling of $14,000, it is estimated that potential buyers have to fork out significant cash and/or CPF for the down payment.
The new PLH model aims to ensure that new public housing built in prime and central locations will remain affordable, accessible and inclusive for Singaporeans. Therefore, it does not position itself to be an investment vehicle. However, in the event that the flat owner wish to sell off his HDB, being able to enjoy a higher sales proceed will still add more to his or her eventual retirement saving.
Using the same example again, the following simulation show how much would the flat owner get back in sales proceeds between the PLH and BTO model.
Assuming flat owners sell their flat after reaching MOP, owners under the BTO model would get back much more sales proceeds compared to owners under the PLH model. Because the owners under the BTO model can get back the sales proceed at a shorter time frame, the sales proceed may provide the additional capital to ballot for another BTO or an executive condominium, or upgrade to private property.
Owners under the PLH model will need to wait longer. Given that real estate is usually correlated to inflation, there will be a good chance that houses will also be more expensive by the time they wish to sell off their HDB flats.
The convenience offered by the PLH flats prime location might be difficult to measure quantitatively but with the growing infrastructure that is happening across Singapore, there is also a good chance that BTO flats in the non-prime estate may also offer similar convenience.
There are several key considerations towards applying for a PLH HDB new launch. From this analysis, one has to be prepared for a larger initial cash/CPF outlay as a down payment. If the PLH HDB are to be sold after MOP, the pool of eligible resale buyers is likely to be smaller and the proceeds of the resale would probably be lesser compared to BTO HDB.
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