Demand for HDB Condos fall

As prices at the private home market falls, pricey condo-style flats of Housing Development Board (HDB) became more unwanted by buyers.

HDB’s larger five-room units worth $600,000 to $670,000 each are still available while more than 70% of the private developer’s 578 units have already been sold due to downward swing of prices.

One requirement of owning an HDB flat is that the household income should not be more than $8,000 a month. “It’s a price-sensitive sector. These buyers can choose between HDB flats and lower-end condos,” said Sing Tien Foo of the National University of Singapore.

“During a downturn, the price gap between these segments will narrow, so demand (at DBSS projects) may be affected,” he added.

In 2006, many DBSS (Design, Build and Sell Scheme) houses became in demand over those being offered by private homes since property market went up. For example, there were 5,700 interested buyers for 616 units in Premiere at Tampines and 3,500 eager buyers for 714 units at City View.

However, Nicholas Mak of Knight Frank Pte Ltd said as prices reached $600,000 or more, competition arises from other sources like those from bigger, executive flats and old leasehold condos.

Meanwhile, Mr. Mak believes that the DBSS is still workable once the government authorises lower land prices.