HDB BTO Aug 2022 Bukit Merah Review: PLH Model Flats in Highly Central Location

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HDB BTO Aug 2022 Bukit Merah Review: PLH Model Flats in Highly Central Location
HDB BTO Aug 2022 Bukit Merah Review: PLH Model Flats in Highly Central Location

All eyes are on the August 2022 HDB BTO launches in Bukit Merah. Not only are they in a highly desirable city fringe location, but also have excellent connectivity. However, they will likely fall under the Prime Location Public Housing (PLH) model.

Falling under the PLH Model may hamper the flats’ investment potential through rules such as a longer Minimum Occupation Period (MOP) of 10 years and a subsidy clawback. Owners are also not allowed to rent out the entire unit even after the MOP expires.

As seen in the May 2022 BTO exercise, less demand was observed for the two PLH launches. So we’re wondering: will the upcoming Aug 2022 Bukit Merah HDB BTO flats be in high demand? Let’s find out more about the projects.

HDB BTO August 2022 Bukit Merah BTO Map

Location of the upcoming August 2022 Bukit Merah BTO flats at Alexandra View. Source: HDB
Location of the upcoming August 2022 Bukit Merah BTO flats at Alexandra View. Source: HDB
Location of the upcoming August 2022 Bukit Merah BTO flats at Havelock Road. Source: HDB
Location of the upcoming August 2022 Bukit Merah BTO flats at Havelock Road. Source: HDB

Want to live in Bukit Merah without having to wait for an HDB BTO 2022 flat to be built? Check out the latest Bukit Merah resale flat listings on PropertyGuru.

Bukit Merah HDB BTO Location (HDB BTO August 2022 Launch)

HDB BTO August 2022 Bukit Merah launch

TBA

Address

Alexandra View / Havelock Road

Nearest MRT

Redhill (East West Line) and Tiong Bahru (East West Line)

Nearest bus interchange

Bukit Merah Bus Interchange

Nearest schools

Crescent Girls’ Secondary School, Gan Eng Seng Primary School, Bukit Merah Secondary School, Alexandra Primary School, Gan Eng Seng Secondary School, Zhangde Primary School

Other nearby amenities

Redhill Market, Delta Swimming Complex, Delta Sports Hall, Kim Seng Community Centre, Tiong Bahru Plaza, Tiong Bahru Market & Food Centre

There will be two Aug 2022 HDB BTO launches in Bukit Merah. The first upcoming BTO August 2022 launch will consist of about 780 flats located at Alexandra View, approximately 4 minutes’ walk from Redhill MRT station.

The second upcoming Bukit Merah August 2022 HDB BTO project will consist of about 870 flats located on Havelock Road, about 9 minutes’ walk from Tiong Bahru MRT station as well as the upcoming Havelock MRT station on the Thomson-East Coast Line, giving it excellent connectivity.

Both upcoming Bukit Merah Aug 2022 HDB BTO launch sites are in highly convenient locations and have a good mix of amenities within walking distance. Both are a very quick MRT ride away from the CBD, making them extremely convenient for those who work there.

The Alexandra View HDB BTO 2022 site is within walking distance of amenities such as Redhill Market, Delta Swimming Complex and Delta Sports Hall. The Havelock Road BTO Aug 2022 site will be 9 minutes’ walk from Tiong Bahru Plaza and near other popular amenities like Tiong Bahru Market and the hip lifestyle area.

There are also numerous schools in the area such as Crescent Girls’ Secondary School and Gan Eng Seng Secondary School.

Bukit Merah HDB BTO Price (HDB BTO August 2022 Launch)

Unit type

Bukit Merah BTO Price (HDB BTO August 2022)

Previous Bukit Merah BTO Price (HDB BTO May 2021)

Median resale flat prices in the area

3-room

TBA

$419,000 – $504,000

$402,500

4-room

TBA

$602,000 – $710,000

$750,000

Due to their highly central location, the HDB BTO Aug 2022 Bukit Merah flats are likely to be priced at a premium. However, the flats are likely to fall under the PLH model, which means that buyers may receive additional subsidies to defray the costs, which must be paid back upon the sale of the property.

It must be noted, however, that the PLH model is likely to also depress capital gains, making the HDB BTO August 2022 Bukit Merah launch more suitable for those who are looking to live in the flats long-term, rather than try to turn them into an investment.

The two HDB BTO 2022 launches in Bukit Merah consist only of 3-room and 4-room flats, making them more suitable for smaller households. Larger or multi-generational families might need to look elsewhere.

According to HDB’s resale statistics for Q1 2022, the median resale price for 3-room and 4-room flats in Bukit Merah was $402,500 and $750,000 respectively. Do note, however, that median resale prices seem lower than expected due to a large number of older resale flats in Bukit Merah.

Newer resale flats in Bukit Merah fetch much higher prices. However, it remains to be seen how the PLH model will affect the resale prices of the affected flats.

Budgeting for Your Bukit Merah August 2022 BTO Home Loan

The HDB BTO August 2022 Bukit Merah flats are going to be priced at a premium due to their highly desirable location. Budgeting is thus the key to ensuring that you can afford your new home.

Note: for now, we’ve used price estimates of how much we think the upcoming Bukit Merah August 2022 HDB BTO flats will cost. On the day of the release, prices and calculations will be updated accordingly.

HDB BTO August 2022 unit type

Price

If you take an HDB loan (at 2.6%, 85% LTV)

If you take a bank loan (at 1.6% p.a., 75% LTV)

3-room

$450,000

$67,500 downpayment, estimated $1,735 monthly mortgage repayments

$112,500 downpayment, estimated $1,366 monthly mortgage repayments

4-room

$650,000

$97,500 downpayment, estimated $2,507 monthly mortgage repayments

$162,500 downpayment, estimated $1,973 monthly mortgage repayments

We have used price estimates based on previous HDB BTO launches to compile the above examples. However, be aware that the actual price you must pay will depend on the indicative pricing for the August 2022 Bukit Merah launch, as well as the specific unit you are allocated. All prices used in the above examples do not take into account CPF housing grants.

In our HDB loan example, we’ve used an interest rate of 2.6% and an LTV of 85%, adjusted based on the new property cooling measures implemented in Dec 2021. For the bank loan, we have assumed an interest rate of 1.6% and an LTV of 75%.

All examples are for a loan tenure of 25 years. However, if you are prepared to pay higher monthly instalments, you can potentially opt for a shorter loan tenure in order to repay your loan earlier.

For a better idea of how much you’ll be paying, check out our affordability calculator and enter the exact details of your loan. If you require personalised assistance with financing and home loans, don’t hesitate to speak to one of our PropertyGuru Finance mortgage experts.

Bukit Merah BTO Amenities (HDB BTO August 2022 Launch)

Highly Central Location

The Bukit Merah BTO Aug 2022 sites are in highly attractive locations on the city fringe in a sought-after mature estate. Both sites are a speedy MRT ride or drive away from the CBD as well as other city centre locations like Orchard, Marina Bay and Robertson Quay.

Excellent Connectivity

The Havelock Road Bukit Merah HDB BTO August 2022 site is located within walking distance of two MRT stations, Tiong Bahru MRT station on the East West Line and the upcoming Havelock MRT station on the Thomson-East Coast Line.

Meanwhile, the Alexandra View Bukit Merah HDB BTO Aug 2022 site is only a 4-minute walk from Redhill MRT station on the East West Line.

Attractive Mature Estate with Popular Amenities

The Redhill estate is a highly established one filled with popular long-standing amenities and eateries including Redhill Market, Tiong Bahru Market, Tiong Bahru Plaza and the many cafes and lifestyle businesses in the area around Yong Siak Street.

Conclusion: Is the August 2022 Bukit Merah HDB BTO Worth Ballotting for?

There is no doubt that the August 2022 Bukit Merah HDB BTO flats are highly desirable. But the likely high price tag and the fact that they will probably fall under the PLH Model will be enough to deter some buyers.

In addition, as only 3-room and 4-room flats are available in this launch, it is not suitable for large households.

Pros of the August 2022 Bukit Merah HDB BTO

  • Highly central location

  • Quick commute to CBD

  • Walking distance to one or two MRT stations

  • Mature estate with attractive amenities

  • Lots of schools in the area

Cons of the Bukit Merah August 2022 HDB BTO

  • Expensive

  • Falls under PLH Model

  • Only 3-room and 4-room flats are available

For more property news, resources and useful content like this article, check out PropertyGuru’s guides section.

Are you looking to buy a new home? Head to PropertyGuru to browse the top properties for sale in Singapore.

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This article was written by Joanne Poh. A former real estate lawyer, she writes about property and personal finance and spends her free time compulsively learning languages and roller skating in carparks.

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