journo
01-09-22, 09:26
The average price of a new condo in the suburbs is now 53.6% more than that of a million-dollar HDB apartment, according to OrangeTee
Aug 31, 2022
At the moment, the price of a brand new condominium in the suburbs is at least fifty percent higher than the price of a four-room apartment that costs one million dollars and is owned by the Housing and Development Board (HDB) in any area. According to a research that was distributed by OrangeTee on Wednesday, this may explain why there has been a recent rise in demand for such flats, especially in places that are not yet mature (Aug 31).
The difference in price between new condominiums in the suburbs and flats with four bedrooms and a million dollars that are situated everywhere in the country was at 53.6% during the first eight months of this year alone. The difference in price was just 1.3% higher in 2019, compared to only 0.5% higher in 2018.
According to the findings of the study, the typical price of a 4-room million-dollar apartment anywhere in Singapore is 1.13 million Singapore dollars, which is around 53% less than the median price of a new condominium outside of the central region, which is 1.73 million Singapore dollars.
According to the real estate business, taking into consideration the price difference between the two types of properties, some purchasers may find that million-dollar apartments are "much cheaper" than new suburban condominiums.
https://i.imgur.com/nm8SgIb.png
According to the market observer research published by OrangeTee, further factors that are contributing to the rise in demand for these flats include the diminishing supply of large built-to-order (BTO) flats in mature estates as well as the increasing wealth of purchasers.
The number of big BTO flats available in mature estates has decreased, which means that buyers who want to remain in mature estates but are interested in purchasing larger units will have to look to the resale market.
When compared to 2017, when 10.9% of the total BTO flats launched were for larger flat types such 5-room and 3-generation flats, the percentage of larger flat types that made up just 7% of the BTO supply in 2021 is a significant decrease.
According to OrangeTee's research, just 3.6% of the BTO flats that were introduced in 2022 thus far were for 5-room and 3-generation apartments. This amounts to 489 units.
https://i.imgur.com/jk4smVt.png
In addition to this, it discovered a growing number of flat deals of a million dollars or more in non-mature estates. Nine of the apartments that were sold for 231 million dollars during the period of January to August 2022 were located in non-mature estates. These estates included Woodlands (four units), Yishun (three units), Hougang (one unit), and Bukit Batok (1 unit).
In 2018, there was just one million-dollar HDB sale registered, and there have been none documented in 2019, 2020, or 2021.
"As prices for million-dollar flats in mature estates continue to rise, more buyers may look for cheaper alternatives in non-mature estates," said Christine Sun, senior vice president for research and analytics at OrangeTee. "These cheaper alternatives may entail similar product attributes, such as large floor areas or spectacular views," she added.
Aug 31, 2022
At the moment, the price of a brand new condominium in the suburbs is at least fifty percent higher than the price of a four-room apartment that costs one million dollars and is owned by the Housing and Development Board (HDB) in any area. According to a research that was distributed by OrangeTee on Wednesday, this may explain why there has been a recent rise in demand for such flats, especially in places that are not yet mature (Aug 31).
The difference in price between new condominiums in the suburbs and flats with four bedrooms and a million dollars that are situated everywhere in the country was at 53.6% during the first eight months of this year alone. The difference in price was just 1.3% higher in 2019, compared to only 0.5% higher in 2018.
According to the findings of the study, the typical price of a 4-room million-dollar apartment anywhere in Singapore is 1.13 million Singapore dollars, which is around 53% less than the median price of a new condominium outside of the central region, which is 1.73 million Singapore dollars.
According to the real estate business, taking into consideration the price difference between the two types of properties, some purchasers may find that million-dollar apartments are "much cheaper" than new suburban condominiums.
https://i.imgur.com/nm8SgIb.png
According to the market observer research published by OrangeTee, further factors that are contributing to the rise in demand for these flats include the diminishing supply of large built-to-order (BTO) flats in mature estates as well as the increasing wealth of purchasers.
The number of big BTO flats available in mature estates has decreased, which means that buyers who want to remain in mature estates but are interested in purchasing larger units will have to look to the resale market.
When compared to 2017, when 10.9% of the total BTO flats launched were for larger flat types such 5-room and 3-generation flats, the percentage of larger flat types that made up just 7% of the BTO supply in 2021 is a significant decrease.
According to OrangeTee's research, just 3.6% of the BTO flats that were introduced in 2022 thus far were for 5-room and 3-generation apartments. This amounts to 489 units.
https://i.imgur.com/jk4smVt.png
In addition to this, it discovered a growing number of flat deals of a million dollars or more in non-mature estates. Nine of the apartments that were sold for 231 million dollars during the period of January to August 2022 were located in non-mature estates. These estates included Woodlands (four units), Yishun (three units), Hougang (one unit), and Bukit Batok (1 unit).
In 2018, there was just one million-dollar HDB sale registered, and there have been none documented in 2019, 2020, or 2021.
"As prices for million-dollar flats in mature estates continue to rise, more buyers may look for cheaper alternatives in non-mature estates," said Christine Sun, senior vice president for research and analytics at OrangeTee. "These cheaper alternatives may entail similar product attributes, such as large floor areas or spectacular views," she added.