SINGAPORE – Another Build-To-Order (BTO) project – Anchorvale Village in Sengkang – has exceeded the legal completion date, and buyers will be compensated by the Housing Board (HDB).
The project, which has 207 units across two blocks, is now expected to be finished between May and July in 2023, which is a delay of about four to six months beyond the delivery possession date – the legal contractual date that HDB is required to hand over the keys.
In response to queries from The Straits Times, the HDB said all buyers will receive the maximum reimbursement sum that they are eligible for, without needing to submit any claims.
Of the 207 two-room flexi and three-room units, 200 have been booked.
The buyers can expect to be reimbursed between $2,270 and $6,360, based on current estimates of the delay, in a one-off payment about two months after key collection, said HDB.
Those who get their keys in May 2023 will get between $2,270 and $4,240, while those who get theirs in July 2023 will receive between $3,400 and $6,360.
Anchorvale Village was originally slated for completion in the first quarter of this year when it was launched for sale in November 2017.
Factoring in the fresh delays, this brings the total waiting time to about 5.2 years, or about 62 months.
The first BTO project to exceed its delivery possession date was Waterway Sunrise II in Punggol, which has 1,014 units across seven blocks, after its then main contractor ran into financial difficulties and had to cease operations.
The reimbursement range for buyers of Waterway Sunrise II, which has two-room flexi, three-room and four-room units, is projected to be between $700 and $10,500, with the average sum at $5,000. The project is expected to be completed six to nine months after its delivery possession date in May to June this year.
Of the 98 BTO projects currently under construction, Anchorvale Village and Waterway Sunrise II are the only two to have incurred a delay of more than one year and exceeded their delivery possession date, said HDB.
Delays for most BTO projects are kept to between six and 12 months after government support and assistance measures are rolled out, said HDB.
It told ST that Anchorvale Village faces significant challenges that have impacted its construction progress more than the other delayed BTO projects.
For instance, the project, which is integrated with a neighbourhood centre, is located on a built-up site surrounded by existing developments.
The site along Anchorvale Road sits across the road from Sengkang Riverside Park and Sengkang Sports Centre.
“The tight construction site and more complex design with the integration of commercial and residential components posed additional constraints and challenges,” said HDB.
Challenges from the pandemic also hurt progress.
The main contractor Ken-Pal had just begun work on the basement carpark when all construction work had to be halted during the two-month circuit breaker in 2020.
When work resumed, progress was impeded by manpower and material shortages, as well as the stringent Covid-19 safe management measures at the worksite.
In December 2020, buyers were informed of a nine-month delay, with the completion pushed to the fourth quarter of 2022.
Last year, HDB said it continued to assist Ken-Pal through advance payments, co-sharing of costs, workforce recruitment and other measures, even as Covid-19-related challenges such as Malaysia’s movement control order and tightened supply of workers from South Asia continued to pose obstacles.
“The project was able to make some headway between the end of 2021 and early 2022, and largely managed to keep to the progress milestones during those few months,” said HDB.
However, progress on the superstructural phase of construction – the portion of a building that is constructed above ground level – was hindered by frequent rain in March and April this year and operational hurdles.
“The pace of the precast lifting and installation works in this phase was significantly constrained by the tight construction area, which was surrounded by existing developments, with access restriction for heavy vehicles and equipment,” said HDB.
It added that it conducted a detailed evaluation of the project’s progress and timelines last month, and assessed that it will no longer be possible to complete work by the delivery possession date of Jan 31, 2023.
Flat buyers were notified of the fresh delays earlier this month via e-mails and letters sent by HDB and seen by ST.
Trade finance officer Jasmine Goh, 26, who bought a three-room unit in Anchorvale Village with her fiance, said the delay did not come as a surprise based on the work progress they observed in the past year.
“We compared the progress of our project with our friend’s BTO project that has the same completion period, and ours seemed to be lagging behind,” she added.
Ms Goh, who is expecting her first child at the year end, has applied to HDB for a rental flat while waiting for her new home.
“At one point, we did consider cancelling our BTO flat purchase because of the long wait, but we eventually decided not to. Because of our… age, we can still afford to wait,” she said.
The construction industry has been one of the worst-hit sectors amid the pandemic, with many firms grappling with higher costs and manpower shortages over the last two years.
With borders reopening and more workers entering Singapore, HDB said manpower constraints have eased significantly in recent months, with almost all BTO sites nearing full manpower capacity.
However, HDB said there are still some uncertainties such as the Ukraine-Russia conflict and the Covid-19 situation in China, which may impact material prices and further disrupt the global supply chain.
“We’re monitoring these developments very closely and have been responding as appropriate to better support our contractors and suppliers,” said HDB.
“With the improving Covid-19 situation and more positive outlook in the construction industry, HDB will strive to make further progress to minimise delays and deliver new BTO flats to buyers as soon as possible.”
This month, about 5,300 BTO flats in towns such as Bukit Merah, Jurong West, Ghim Moh estate in Queenstown, Toa Payoh and Yishun will be launched for sale.
“Source: [HDB compensates BTO flat buyers for delay] © Singapore Press Holdings Limited. Permission required for reproduction”
