Has Covid-19 changed your mind about getting a BTO?
If not, should it?
The typical journey of a homeowner usually starts with a BTO, where government grants are aplenty despite them being on circumstantial basis. Hence, BTO has been the go-to choice for potential homeowners and engaged couples given its affordability, especially in comparison to its counterpart: Resale flats. However, with this global pandemic that has been haunting economies since 2020 and likely so in the near future, the housing landscape in Singapore has definitely changed. Let’s discuss how significant this change has been, and whether it should skew your decision.
It is no stranger to everyone that Singapore had been hit with a tumultuous Covid-19 cluster within foreign worker dormitories. While this economic ailment has been on its steady road to recovery, it has left behind an adamant delay in about 85% of BTO projects in Singapore, according to the Ministry of National Development (MND). With the announcement of majority of ongoing BTO projects being delayed, here are a few considerations that you’d like to factor into your decision-making process:
1. Covid-19’s impact on BTO’s affordability
No doubt the pandemic has slowed down the constructions of BTOs, shifting the supply far away from aplenty. When you combine the effects of this fall in supply and a steady increase in demand, we see that the prices of BTO are getting less cheap. In comparison to resale flats, with this price gap slowly bridging, perhaps BTO may be a more affordable option – but combined with the other points below, its price point may no longer be the main feature to entice couples to purchase a BTO.
2. Waiting time
Can you really afford to wait that long to get your house? With the BTO projects being delayed further, the longer waiting time has been a huge factor for couples when considering getting a BTO, or even for those who have secured their spot but cannot wait to get their keys. Many have lamented about the lack of personal spaces especially for those who want to quickly settle down, henceforth seriously considering the switch to the non-traditional route of getting a resale instead. Combine this with its increasing prices, perhaps BTO isn’t the best option after all.
3. Uncertainty
This comes in all forms – the amount of time needed to wait for the completion of the project, the amenities that are accessible to you in that area in the near future, lack of. Viewing opportunities – getting a BTO means being unable to enjoy the luxury of accessibility to key information on the amenities, site plan, etc. as compared to getting a resale flat.
Well, all in all we’re not discouraging couples from going the conventional BTO route, but combining the several factors in, there is no doubt that the attractiveness of BTOs have been diluted by the Covid-19 situation and its impact on our economy. Just a caveat – if all couples are switching from BTO to resale flats, then affordability itself may be a bigger issue when the demand peaks for resale flats, giving you another headache.
Headaches are aplenty, but do feel free to consult any of us at BCD for any queries or advice. At BCD, our focus is YOU.
