07-02-2012, 06:08 PM
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Business Times - 07 Feb 2012
More switching to non-HDB homes
ECs notch sharpest spike in demand from upgraders
By MICHELLE TAN
(SINGAPORE) More are making the switch to non-HDB homes, with executive condominiums (EC) being the top alternative pick, says R'ST Research.
In fact, the number of Housing and Development Board flat dwellers purchasing non-HDB residential homes - comprising all non-landed private, landed and EC units - hit a record high of 13,910 in 2011, exceeding the previous peak of 13,769 in 2010, and now constitute 42 per cent of the total number of sales transactions in the non-HDB housing segment, according to data from URA Realis.
In particular, ECs saw the sharpest spike in demand from upgraders, notching yet another record with 2,407 units sold in both developer sale and resale segments, up 123 per cent year on year.
Said R'ST director Ong Kah Seng: 'The interest for ECs was due to the large supply of EC units which were launched in 2011 and specifically, new EC projects cater to the needs of the sandwich home buyers, who were mostly HDB dwellers with income falling within the limits of a new EC purchase.'
Other factors that bolstered sales numbers also include the location of many new projects along Singapore's 'growth corridors' as well as the continued quest for better quality housing.
More pertinently, an increasing number of upgraders now possess deeper pockets following the run-up in HDB resale prices, partly driven by higher cash-over-valuation (COV) numbers.
Mr Ong opined that the price appreciation of public flats has 'psychologically motivated' some owners to make the shift towards private homes.
Moreover, in a land scarce nation such as Singapore, most buyers prefer to invest in 'better quality' homes as they expect prices to trend north over time, notwithstanding economically led price fluctuations.
Looking ahead, buying interest for private condominiums and ECs by those with HDB addresses are likely to remain cautiously optimistic, with future demand expected to be fairly 'property specific'.
'Properties with good design, concept, condition and locational upside may receive better buying interest from HDB dwellers,' said Mr Ong.
'Being conventionally more costs sensitive than private home owners, HDB dwellers who are investment-savvy are likely to use any rare opportunity where prices have generally stabilised or moderated to fulfil their property dreams within their means.'
Business Times - 07 Feb 2012
More switching to non-HDB homes
ECs notch sharpest spike in demand from upgraders
By MICHELLE TAN
(SINGAPORE) More are making the switch to non-HDB homes, with executive condominiums (EC) being the top alternative pick, says R'ST Research.
In fact, the number of Housing and Development Board flat dwellers purchasing non-HDB residential homes - comprising all non-landed private, landed and EC units - hit a record high of 13,910 in 2011, exceeding the previous peak of 13,769 in 2010, and now constitute 42 per cent of the total number of sales transactions in the non-HDB housing segment, according to data from URA Realis.
In particular, ECs saw the sharpest spike in demand from upgraders, notching yet another record with 2,407 units sold in both developer sale and resale segments, up 123 per cent year on year.
Said R'ST director Ong Kah Seng: 'The interest for ECs was due to the large supply of EC units which were launched in 2011 and specifically, new EC projects cater to the needs of the sandwich home buyers, who were mostly HDB dwellers with income falling within the limits of a new EC purchase.'
Other factors that bolstered sales numbers also include the location of many new projects along Singapore's 'growth corridors' as well as the continued quest for better quality housing.
More pertinently, an increasing number of upgraders now possess deeper pockets following the run-up in HDB resale prices, partly driven by higher cash-over-valuation (COV) numbers.
Mr Ong opined that the price appreciation of public flats has 'psychologically motivated' some owners to make the shift towards private homes.
Moreover, in a land scarce nation such as Singapore, most buyers prefer to invest in 'better quality' homes as they expect prices to trend north over time, notwithstanding economically led price fluctuations.
Looking ahead, buying interest for private condominiums and ECs by those with HDB addresses are likely to remain cautiously optimistic, with future demand expected to be fairly 'property specific'.
'Properties with good design, concept, condition and locational upside may receive better buying interest from HDB dwellers,' said Mr Ong.
'Being conventionally more costs sensitive than private home owners, HDB dwellers who are investment-savvy are likely to use any rare opportunity where prices have generally stabilised or moderated to fulfil their property dreams within their means.'