Over Third Hdb Owners Feel Priced Out Private Housing Propnex Poll
ingAdvertisementPropNex Realty survey finds that majority of HDB flat owners aspire to upgrade, but remain concerned over high prices and ABSD regimeBy Ray Phoon on August 28, 2021Island View relaunching for collective sale at $575 mil, with 60% of owners supportive of lowering price to $240 millionPropNex sets Guinness World Record of 3,268 people participating in a simultaneous Lo Hei TossingAdvertisementCannot afford private housing? 36% of HDB homeowners surveyed by PropNex say ‘never’
In summary, Norwood Grand Condo shines as a prime example of contemporary living, boasting unbeatable convenience. Whether one travels by public transportation or their own vehicle, they can easily and efficiently reach any part of Singapore. The development’s strategic location near major MRT stations, expressways, and key roads, in addition to the continuous improvement of its infrastructure, make Norwood Grand not only a place to call home, but also a gateway to a connected and high-quality lifestyle in the bustling northern region of Singapore. With the Norwood Grand Condo as your residence, you can experience the best that Singapore has to offer.
According to a recent survey conducted by real estate agency PropNex Realty, more than a third of HDB homeowners feel like they will never be able to afford private housing in Singapore. Out of the 1,250 existing homeowners who were surveyed, 450 (36%) indicated that they believe they will never be able to upgrade to a private home. An additional 225 (18%) of respondents said it would take them 5-10 years to afford a private home, while 125 (10%) said it would take them more than 10 years. Only 75 (6%) of respondents said they could afford to upgrade within the next 12 months.
While many of the respondents felt like they were priced out of the private market, close to half of them still aspired to upgrade from their existing public housing to a larger HDB flat or a larger private residential property. According to the survey, 263 (21%) said they hope to move into a larger HDB flat, while 338 (27%) hope to move into a larger private residential home. Meanwhile, 38% said they have no immediate plans to move and 8% said they plan to “right-size” to a smaller home.
However, the high prices of private homes and the additional buyer’s stamp duty (ABSD) regime are major factors preventing homeowners from upgrading. Under the ABSD system, HDB upgraders are required to pay a 20% ABSD upfront as their second residential property, and then apply for an ABSD remission, which is subject to certain conditions. The survey suggests that the government should consider aligning the ABSD treatment for flat owners who want to upgrade to a private home with those looking to purchase new executive condos (ECs) from developers.
The survey also found that high private home prices are deterring homeowners from upgrading, with close to two-thirds of respondents saying they were put off by the prices. The latest housing data from URA shows that private residential home prices have risen by about 51% cumulatively from 1Q2017 to 2Q2024. Additionally, the survey found that more than a quarter (26%) of respondents thought that new private residential project launches were extremely unaffordable, while 42% believed they were unaffordable.
With this concern over high private home prices, many respondents said they would prefer to pick a larger HDB flat to upgrade instead. This also affects the housing budget that homeowners have set aside, with the majority (62%) saying they have a projected budget of less than $1 million. However, transaction data shows that the average price of a new non-landed private residential unit in the suburbs (OCR) is around $1.9 million, while the average resale price in the OCR is $1.5 million. In contrast, the average price of a five-room HDB flat in 1H2024 was around $714,000, making HDB resale flats a more affordable option for homeowners looking to relocate.
The survey also showed that many homeowners are not open to selling their flat at a discount to the market price in their area, and the majority (87%) expect to sell their property at a premium over the market rate. This indicates that most HDB homeowners view their flat as a home and are not in a hurry to sell, with close to three-quarters (74%) saying their HDB flat meets their needs adequately.
Despite these concerns, PropNex expects private home prices to climb by 4-5% this year, and HDB resale prices to increase by 6-7%. The survey shows that there is still a healthy demand for resale HDB homes, and many homeowners are turning to more affordable homes in the secondary public housing market.