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06-03-13, 17:04
http://www.straitstimes.com/archive/thursday/premium/money/story/most-new-home-buyers-have-hdb-addresses-20130228
Most new-home buyers have HDB addresses
They bought 9,380 units in 2012 while private home owners bought 8,239 units
Published on Feb 28, 2013
By Esther Teo Property Correspondent
BUYERS with Housing Board addresses entered the market in such high numbers last year that they accounted for the majority of new-home purchases for the first time in almost 10 years.
They snapped up 9,380 units, 34 per cent more than in 2011, while buyers with private addresses bought 8,239 units, just 4 per cent higher, according to DTZ Research.
Purchases by HDB address holders were a majority - 53 per cent - of all deals in the primary market last year, the first time this happened since 2003.
The stronger demand from this segment could be due to rising HDB resale prices, which make private housing more affordable for upgraders, said DTZ's head of Singapore research, Ms Lee Lay Keng.
Some of these buyers could have kept their HDB flat for rental, which would help them meet their mortgage payments for their new private home.
"In other cases, they could be singles staying in HDB flats with their parents and buying for owner- occupation or parents purchasing for their children," added Ms Lee.
The strong demand for new private homes from HDB owners was also a result of their purchases of tiny shoebox apartments of less than 500 sq ft, which often have an affordable quantum of less than $1 million.
They bought a record 1,675 shoebox homes last year, 17 per cent more than the 1,431 they snapped up in 2011.
DTZ's analysis of overseas purchasers found that mainland Chinese reclaimed the pole position from Malaysians in the fourth quarter of last year, buying 471 units - or one in four - of all foreign- bought homes.
Chinese buyers comprised 20 per cent of all foreign buying in 2010 and 28 per cent in 2011.
Buyers from Malaysia, Indonesia and India rounded off the top four. Together, they accounted for 81 per cent of all transactions by non-Singaporeans, both for the quarter and for the year.
Malaysian home buyers held the top spot for the full year with a 26 per cent share, followed by Chinese buyers with 22 per cent, and Indonesians with 19 per cent.
Ms Lee expects the latest cooling measures to affect transaction volumes in the short term as the higher cash outlay from the downpayment and stamp duties could deter buyers.
But the primary market could be less affected as developers may continue to dangle discounts and incentives - something already being seen at the QBay Residences, d'Leedon and Interlace projects.
"On the other hand, there may be a heavier impact in the resale market due to the lack of these discounts and incentives," she added.
"In addition, local two-property owners may be deterred from selling their secondary properties as they would now have to pay additional buyer's stamp duty upon purchasing another one."
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Most new-home buyers have HDB addresses
They bought 9,380 units in 2012 while private home owners bought 8,239 units
Published on Feb 28, 2013
By Esther Teo Property Correspondent
BUYERS with Housing Board addresses entered the market in such high numbers last year that they accounted for the majority of new-home purchases for the first time in almost 10 years.
They snapped up 9,380 units, 34 per cent more than in 2011, while buyers with private addresses bought 8,239 units, just 4 per cent higher, according to DTZ Research.
Purchases by HDB address holders were a majority - 53 per cent - of all deals in the primary market last year, the first time this happened since 2003.
The stronger demand from this segment could be due to rising HDB resale prices, which make private housing more affordable for upgraders, said DTZ's head of Singapore research, Ms Lee Lay Keng.
Some of these buyers could have kept their HDB flat for rental, which would help them meet their mortgage payments for their new private home.
"In other cases, they could be singles staying in HDB flats with their parents and buying for owner- occupation or parents purchasing for their children," added Ms Lee.
The strong demand for new private homes from HDB owners was also a result of their purchases of tiny shoebox apartments of less than 500 sq ft, which often have an affordable quantum of less than $1 million.
They bought a record 1,675 shoebox homes last year, 17 per cent more than the 1,431 they snapped up in 2011.
DTZ's analysis of overseas purchasers found that mainland Chinese reclaimed the pole position from Malaysians in the fourth quarter of last year, buying 471 units - or one in four - of all foreign- bought homes.
Chinese buyers comprised 20 per cent of all foreign buying in 2010 and 28 per cent in 2011.
Buyers from Malaysia, Indonesia and India rounded off the top four. Together, they accounted for 81 per cent of all transactions by non-Singaporeans, both for the quarter and for the year.
Malaysian home buyers held the top spot for the full year with a 26 per cent share, followed by Chinese buyers with 22 per cent, and Indonesians with 19 per cent.
Ms Lee expects the latest cooling measures to affect transaction volumes in the short term as the higher cash outlay from the downpayment and stamp duties could deter buyers.
But the primary market could be less affected as developers may continue to dangle discounts and incentives - something already being seen at the QBay Residences, d'Leedon and Interlace projects.
"On the other hand, there may be a heavier impact in the resale market due to the lack of these discounts and incentives," she added.
"In addition, local two-property owners may be deterred from selling their secondary properties as they would now have to pay additional buyer's stamp duty upon purchasing another one."
[email protected]