More buyers shifting to non-HDB homes

An increasing number of home buyers are now turning to non-HDB homes, with ECs becoming their top choice, according to R’ST Research.

Purchases for non-HDB homes such as landed, non-landed private and EC units hit a record of 13,910 units in 2011, up from 13,769 units in 2010. ECs now account for 42 percent of the sales transactions across the non-HDB housing segment, according to URA Realis data.

ECs notched another record with the largest growth in demand from upgraders, growing 123 percent year-on-year with 2,407 units sold in the sale and resale segments.

“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,” said Ong Kah Seng, Director at R’ST Research.

The location of many projects, along with the growth corridors and the quest for better housing have also strengthened sales. Moreover, upgraders now have deeper pockets with the rise in resale prices of HDB flats, partly due to higher cash-over-valuation (COV) numbers.

Ong added that the appreciation in public flat prices has “psychologically motivated” some owners to shift to private homes.

Source : PropertyGuru – 7 Feb 2012

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