Singapore Property | An interesting trend is growing among buyers with HDB addresses. They are growing an appetite for luxury homes and pricy condominiums. This is from real estate agency OrangeTee & Tie who just released a caveat analysis that covers the first quarter of 2018. The analysis is based on purchases of luxury homes worth more than S$5 million.
HDB flats addresses do not want properties below S$1 million. Their proportion in the purchases of private condominiums within that price range fell in the first quarter of 2018. It stands at 37%. In 2003, it was them doing 97% of the buying.
Sales for non-landed homes in the range of S$1 million up to S$1.5 million stand at 41% of homes sold in the first quarter of 2018. This is up from the 3% recorded in 2003. Homes in the range of more than S$1.5 million got 22% of the share, up from 0.2% in 2003.
In the prime districts, HDB addresses taking up high end non-landed private homes jumped 56% year on year. Last year, luxury homes that were purchased and show HDB addresses in their caveats include The Nassim, Gramercy Park, Goodwood Residence, Ardmore Three, New Futura and Hilltops.
Allan Cheong who is the senior director at Savills Singapore shared the view that there is increasing complexity in working with the HDB market.
This information coming from OrangeTee & Tie is an indicator that the strong Singaporean economy is doing well. While releasing the report, Christine Sun who heads Research and Consultancy at OrangeTee & Tie indicated that HDB dwellers may be taking advantage of undervalued luxury properties to enter the luxury market.
Dominic Lee who runs the luxury team at PropNex Realty advised that the data should not be overly read into, since some of the HDB addresses in caveats may be in use by persons not living in the HDB address.