Demand among HDB upgraders for non-landed private homes has risen slightly, with the proportion of buyers with public housing addresses increasing by three percentage points to 52 percent (1,842 units) in Q2 2014 from the previous quarter, revealed DTZ.
Comparatively, buyers with private addresses accounted for 48 percent (1,702) of such units.
This marks the first time since Q1 2012 after the Additional Buyer’s Stamp Duty (ABSD) was introduced that buyers with HDB addresses accounted for a bigger share of non-landed private home purchases.
The new data comes amid falling resale flat prices, which would have impacted upgrader demand amongst HDB addressees.
“Some buyers with HDB addresses could have been tempted to enter the private residential market with the fall in prices. This could be the case for some HDB addressees looking for value buys for investment, thereby supporting the increase in transactions by HDB addressees,” the report noted.
As for the type of units that they’re choosing, there seems to be greater activity in the primary market, with the majority of new launches in recent years happening in suburban areas close to HDB towns.
“In 2012 and 2013, 70 percent and 57 percent respectively of all units launched were in the OCR (Outside Central Region), while in H1 2014 alone, this proportion was 65 percent,” said DTZ.
Residents from nearby public housing estates are driving interest for these suburban launches, with the proportion of new private home purchases by HDB addressees reaching 72 percent (2,135 units) in H1 2014.
Coco Palms saw the largest proportion of buyers with HDB addresses in Q2, with 336 of the 488 units (69 percent) taken up by HDB addressees.
This was followed by Lakeville, Commonwealth Towers and Waterfront @ Faber where 67 percent (126 units), 60 percent (141 units) and 59 percent (38 units) were sold to this group of buyers.
Image: Crowd at the launch of Coco Palms. (Photo by CDL)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
