Results 1 to 5 of 5

Thread: More HDB upgraders turning to private property market

  1. #1
    Join Date
    Mar 2010
    Posts
    2,571

    Default More HDB upgraders turning to private property market

    http://www.channelnewsasia.com/stori...147813/1/.html

    More HDB upgraders turning to private property market



    More HDB upgraders turning to private property market
    By Amanda Feng | Posted: 18 August 2011 2359 hrs
    *
    SINGAPORE: More HDB flats may be on the way but upgraders are increasingly turning to the private property market.

    According to a report by DTZ Research, there is a rising trend of transactions made by purchasers with HDB flat addresses.

    These buyers bought about 39 per cent of all private residential homes in the second quarter of this year, higher than the 37 per cent registered in the first quarter 2011 and the 34.6 per cent in the fourth quarter last year.

    DTZ said this could be due to more projects launched in the suburban areas therefore attracting HDB upgraders, HDB flat owners who buy for investment, or singles who are staying with their parents in HDB flats buying their own apartments.

    Another trend that DTZ has identified is that these buyers are also purchasing small units that are below 1,000 sq ft in size. It found that 50.3 per cent of purchasers who bought units below 1,000 sq ft in Q2 this year had HDB addresses, an increase over the 47.5 per cent in Q1 2011. This is also a reversal from past trends in 2010 and Q1 2011 when private property owners were investing in small units.

    DTZ's analysis also revealed that Singaporeans continued to drive demand at the lower end of the price scale. Around 75 per cent of purchases costing S$500,000 or less were made by Singaporeans in the second quarter. They purchased 69 units costing S$500,000 or less in Q2, slightly more than double the 34 transactions in the first quarter.

    Eugene Lim, vice-president of ERA Singapore, commented: "As we all know, HDB resale prices have been on the increase. People who have made money selling their HDB flats are able to upgrade into private properties."

    "They are buying more small units as smaller units are within affordable quantum - those in HDB addresses rarely have affordability exceeding S$1 million," he added.

    Based on caveats lodged for both new and secondary sales, DTZ said that overall private property sales increased more than 20 per cent in the second quarter this year, with transactions of private homes totalling 8,458 units, more than the 6,958 transactions registered in the first quarter.

    Of the units sold, 3,294 units were primary sales (direct from developers), an increase of 18.4 per cent quarter-on-quarter.

    However, secondary sales (or resales) jumped by 23.7 per cent quarter-on-quarter to 5,164 units.

    Foreign purchases recorded 1,327 in the second quarter, accounting for 16 per cent of purchases. While this was similar to the previous quarter this year, it was, however, higher than the 11 per cent recorded a year ago.

    Among non-Singaporean buyers who comprise foreigners and Permanent Residents (PRs), mainland Chinese buyers made up 26 per cent of purchases and were the top purchasers of residential properties for the second consecutive quarter.

    Head of DTZ South East Asia Research, Chua Chor Hoon, said that concerns over the US and Europe debt problems as well as the slowing economy have led to more cautious sentiments in the private residential market.

    "However, purchase demand for private homes will still be supported by economic growth and the low interest rate environment in Singapore," she said.
    Y
    - CNA/fa

  2. #2
    Join Date
    Jul 2011
    Location
    Earth
    Posts
    4,063

    Default

    But now with the income ceiling raised for EC, maybe the HDB upgraders will turn to EC rather than pte property?

  3. #3
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Its actually not surprising to see that many HDB upgraders are turning to PC because HDB flats now commands a price which is probably closer to that of a lower end PC than for the past so many years. This is especially true when so many ECs built between 2001 to 2006 are simply so appealing because most are cheaper than other PCs in the same area! These EC owners are also so willing to sell because they got their ECs real cheap! And yes many of these ECs offer 3 bedders at less than $1mil. Its a win win for all!

  4. #4
    Join Date
    Oct 2008
    Posts
    1,493

    Default

    3 bedders for SGD 1 million isn't exactly cheap by any standard.

    These same properties were going for just SGD 450k a couple of years ago

    You're right. The EC owners got their units real cheaply. So no need to super fatten the current EC owners wallets unnecessarily when you know going forward you can buy much cheaper

  5. #5
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by Geylang OKT
    3 bedders for SGD 1 million isn't exactly cheap by any standard.

    These same properties were going for just SGD 450k a couple of years ago

    You're right. The EC owners got their units real cheaply. So no need to super fatten the current EC owners wallets unnecessarily when you know going forward you can buy much cheaper
    It certainly isn't cheap by any standard but still chou chou cheaper than most other PCs of similar sizes. Bo bian EC owners' wallet will be fatten inevitably by these HDB upgraders! I have friends/colleagues who just bought these ECs too!

Similar Threads

  1. Redas calls for ABSD deferment for first-time HDB upgraders to private property
    By New Reporter in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 01-10-20, 18:09
  2. Wing Tai CEO said market is turning.
    By Lovelle in forum Singapore Private Condominium Property Discussion and News
    Replies: 11
    -: 05-09-13, 17:34
  3. Turning point for office market
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 26-04-13, 14:16
  4. HDB upgraders set pace in private property market
    By land118 in forum Singapore Private Condominium Property Discussion and News
    Replies: 6
    -: 20-10-11, 08:20
  5. HDB upgraders hold key to property market turnaround
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 12-06-08, 11:00

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •