By Fiona Ho
The introduction of last year’s property cooling measures has no doubt hampered the housing ability for many Singaporeans. In July 2018, the government raised the Additional Buyer’s Stamp Duty (ABSD) rates by five percentage points for individuals, while the loan-to-value limits were also tightened.
The hefty increase in cash outlay now required for a home’s down payment affects particularly HDB home owners who aspire to upgrade to private residential properties.
Despite this, there are still options in the primary market that may yet keep your condo dreams alive.
For a start, we’ve rounded up the most affordable new condos for HDB upgraders in the year 2019. With a larger cash outlay and budget constraints in mind, we zoomed in on new developments whose average transacted prices hover around $1,300 per square foot (psf) – a comfortable entry level price range for suburban condominiums.
Only new developments that registered five or more sales transactions within the first five months of the year 2019 were considered in our analysis.
Most affordable new condos for HDB upgraders in 2019
Source: PropertyGuru, URA
Buyers’ price sensitivity and dwindling demand for new private homes have been observed in the dip in new sales transactions in the month of April.
Unsurprisingly, the top selling private residential projects in the same month are those that are relatively more affordable, especially those located in Outside Central Region (OCR).
They include those we’ve already indicated on our list, such as Parc Botannia, Treasure at Tampines and Riverfront Residences, whose average transacted prices hover around the $1,300 threshold.
Comparatively, new projects in OCR transacted at an average of $1,512 psf in the first five months of 2019, with Seaside Residences (avg $1,979 psf) and the newly-launched The Gazania (avg $2,087 psf) took the lead as some of the most expensive new residential projects in the market region.
Looking to buy a private condo? Get more insights on the right locations for your new home at AreaInsider.
Eye on the East
Homes in the East have risen in popularity amongst growing families in recent years due to the revival of suburban localities, the establishment of new growth corridors and new transportation links in the region.
For instance, residents in the East will soon enjoy more MRT links to the city and to the northern parts of the island with the upcoming Thomson-East Coast Line (TEL).
This can be observed in the strong take-ups of new private homes in the region, as seen in last year’s launch of the 861-unit The Tapestry, and the recent launch of the mega-project Treasure at Tampines. The latter comprises 2,203 units and is touted as Singapore’s largest condo development.
About 315, or 70 per cent of the 450 units released at The Tapestry were snapped up at an average price of $1,310 psf during its launch weekend in March 2018.
Meanwhile, Treasure at Tampines moved 272 units, or 56 per cent of the 490 units released at an average price of $1,280 psf during its launch weekend in March 2019.
On its healthy take-up rate, a spokesperson at Sim Lian – the project’s developer – said it was an affirmation that projects with “good location, great accessibility and competitive pricing will continue to be well-received.” HDB upgraders are said to make up the bulk of buyers of the mega-project.
With that, Treasure at Tampines’ launch is expected to influence home prices within the area this year and the following year.
Fiona Ho, Digital Content Manager at PropertyGuru, wrote this story. To contact her about this or other stories, email email@example.com