The data from property consultancy DTZ shows that the property boom is vastly spreading to the higher market as most buyers today consider pricy homes and properties.
The analysis of caveats lodged indicates that during the second quarter of the year, 22 percent of total private home sales were homes valued more than $1.5 million, as compared to 10 percent in the first quarter.
Between April and June, buyers that are living in private residences bought 4,651 homes, which is much more than the 3,710 homes bought by HDB-based buyers. This indicated an overflow of demand from the mass market to the middle and higher tier sections, the DTZ said.
This is a turnaround from the year’s 1st quarter, as HDB first-time buyers and upgraders exceeded the number of buyers residing in private residences. Seven in ten purchasers of new private homes during the year’s 1st three months had Housing Board addresses.
The data from the DTZ indicates that 25 percent of property buyers bought up homes in the prime districts 9, 10 and 11 in the year’s second quarter, an increase from 14 percent during the year’s first quarter. In 11/2 years, it was the first time that sales in prime districts surpassed 20 percent of the whole sales.
Chua Chor Hoon, South-east Asia research DTZ head, said, “We have definitely seen more investors coming back in recent months”.
”As private home prices have corrected 10 to 33 per cent from their 2007 peak to the lows of the first quarter of 2009, Singapore households have ploughed savings accumulated during the prosperous years in 2004 to 2007 into the property market”.
HDB marketing prices have made a boost increase in wealth for HDB upgraders, which caused the proportion of purchasers with HDB addresses in the year’s second quarter to achieve 44 percent. DTZ noted that even though it’s a smaller proportion than in the 1st quarter, this was well ahead of the 29 percent encountered during 2006 when the market was just beginning to catch up. HDB first-time buyers and upgraders usually buy into mass-market condos.
Approximately 75 percent of buyers dwelling in HDB flats bought homes for less than one million dollars during the 2nd quarter of the year.
In contrast, about 60 percent of buyers dwelling in private homes bought units pricing over one million dollars.
A group of buyers dwelling in HDB flats purchased smaller units of 1,400 square foot or below. Experts said that this can prove to be more reasonable as the total quantity price can be comparatively low, even though the price per square foot is on the up side.
With sub sales of non-landed homes tripling to 1,200 units in the 2nd quarter, keen buying interest spilled into the secondary market. DTZ said that the sub sale price of these properties increased 18 percent to $960 per sq ft from $813 per sq ft.