Fewer HDB flat dwellers buying condos, private apartments

The number of HDB flat dwellers buying condominiums or private apartments last year fell 1.1 percentage point.

According to the Singapore Real Estate Exchange (SRX), the total number of non-landed private home transactions in 2013 was 20,203 units.

Of these, 9,192 units were bought by those who owned or lived in HDB flats.

This accounted for 45.5 per cent of the total purchases, down from 46.6 per cent in 2012.

The number of non-landed private home purchases made by HDB addressees in 2012 was 14,955 out of 32,125 total purchases.

Experts said cooling measures such as the total debt servicing ratio (TDSR) restricted financing options for potential buyers to upgrade, resulting in less demand in the market.

Chris Koh, director of Chris International, said: “Because a lot of buyers today own HDB flats – most of them are servicing their instalments for their HDB flats.

β€œOn top of that, if they have a car, that would mean quite a bulk of their monthly income is going toward instalments. If you put TDSR at 60 per cent and they are already stretching at 40 to 50 per cent, then it’s difficult for them to buy a second property.”

Source : Channel NewsAsia – 27 Feb 2014

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