{"id":9115,"date":"2017-02-11T05:53:07","date_gmt":"2017-02-10T21:53:07","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=9115"},"modified":"2022-07-01T04:06:04","modified_gmt":"2022-06-30T20:06:04","slug":"3gen-flats-popular-expected","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/3gen-flats-popular-expected\/","title":{"rendered":"3Gen flats: Why they are becoming more popular than expected"},"content":{"rendered":"
<\/div>
\"With
With 3Gen flats seeing an uptick in demand recently, perhaps it’s time to re-consider their appeal to aspiring homebuyers<\/figcaption><\/figure>\n

When 3Gen flats were announced in 2013, no one thought they would be popular. It was assumed that most Singaporeans wanted to move out after they were married, and that resale restrictions would make these flats unattractive. However, these flats have seen a take up rate of 83 percent in recent exercises, surpassing analyst expectations. Here’s why it may be happening:<\/span><\/p>\n

What are 3Gen flats?<\/b><\/h3>\n

3Gen flats are multi-generational family flats, for Singaporean couples who want to stay with their parents. These flats have a little more room (115 square metres, or about five square metres more than the average). They are available to applicants that consist of one couple (courting or married), and at least one parent. <\/span><\/p>\n

These flats range from $310,000 to around $540,000, based on location. <\/span><\/p>\n

3Gen flats have an important restriction that other flats don’t. Apart from the usual limitations, such as the Minimum Occupancy Period (MOP), these flats can only be resold to other multi-generational families. In addition, owners of 3-room or larger 3Gen flats cannot sublet rooms, until the end of the MOP (for regular 3-room or larger flats, owners can sublet bedrooms even before the MOP is ended).<\/p>\n

These restrictions caused analysts to doubt the appeal of such flats. In fact, even the government did not seem confident. Former National Development Minister Khaw Boon Wan said at the time that: <\/span><\/p>\n

“<\/span>I doubt it is a huge demand, so we will try it out and if it works … <\/span><\/i>If it doesn\u2019t, it doesn\u2019t matter<\/span><\/i><\/a>” <\/span><\/p>\n

Today however, 651 of 786 such flats have been booked. Three developments have fully sold out their supply of these flats: \u00a0Saraca Breeze @ Yishun, Punggol BayView, and Tampines Green Ridges.<\/span><\/p>\n

This unexpected response is revealing. It shows that several of our underlying assumptions about Singaporean home buyers may in fact be wrong. Some of the unforeseen reasons may include:<\/span><\/p>\n