Feb 28, 2013 - By: iProperty.com Singapore
The rise in private residential property purchases in 2012 is primarily attributed to increased demand from public housing dwellers.
According to the latest findings released by DTZ Research and R’ST Research that are backed up by data from URA, 17,590 out of 36,887 private home transactions were completed by HDB-address holders across the market in 2012. As such, they form 48% of the private home buyers’ market, which is a marked increase of 17% from the previous year.
The reason why more homeowners are buying private residential properties could be attributed to rising HDB resale prices which make private homes more affordable for HDB upgraders. As there is no restriction on Singaporeans owning both HDB flat and private property at the same time, home owners could choose to keep their HDB flat for rental and use it finance their mortgage payments for their private home.
Even though demand for private residential properties are encouraged by low interest rates, the recent rollout of property cooling measured in January 2013 could potentially bring sales down in the next few months. Experts said that buyers are likely to adopt a wait-and-see attitude before committing to any purchases in light of the higher buyer’s stamp duty (ABSD) and tighter financing restrictions.
Despite the fact that private residential sales may be down in the short term, market watchers are confident that transaction volumes would pick up as opportunistic HDB upgraders rush to purchase private properties before new property restrictions are being implemented. For instance, experts would expect to see regulation of property ownership to possibly disallow Singaporean HDB upgraders to continue owning a HDB flat after a private property purchase in the event that demand for private properties spiral out of control.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)