{"id":120391,"date":"2021-02-15T02:15:46","date_gmt":"2021-02-14T19:15:46","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/widening-price-gap-between-new-condos-older-units-in-suburban-areas-unsustainable\/"},"modified":"2021-02-15T10:53:49","modified_gmt":"2021-02-15T03:53:49","slug":"widening-price-gap-between-new-condos-older-units-in-suburban-areas-unsustainable","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/widening-price-gap-between-new-condos-older-units-in-suburban-areas-unsustainable\/","title":{"rendered":"Widening price gap between new condos, older units in suburban areas unsustainable"},"content":{"rendered":"


\nWidening price gap between new condos, older units in suburban areas unsustainableAnalysts expects demand from upgraders to continue this year as\u00a0HDB resale prices\u00a0rose 5% last year, or its steepest growth since 2012 when values increased 6.5%.
\nThe price gap between new private condos in Singapore and older ones has widened to about 37% last year from 32.4% in 2019, reported The Straits Times (ST).
\nOrangeTee & Tie Research data showed that the difference in prices were starker in the suburban areas at 47.3% from 38.7% in 2019 or the widest gap since 1995, said Christine Sun, Senior Vice-president of Research and Analytics at OrangeTee & Tie.
\nThis came as HDB upgraders, who were armed with cheap mortgages, engaged in a buying spree in these areas last year.
\nKnight Frank Singapore Head of Consultancy Alice Tan said many of these buyers recently completed their five-year Minimum Occupation Period (MOP).
\nRecommended article:\u00a0HDB Flat to Private Property: How Much Must You Save To Upgrade Right After MOP?
\nNicholas Mak, Head of Research and Consultancy at ERA Realty, also pointed to the fact that new suburban homes defied the pandemic to increase 7.9% in 2020, with median prices of new launches hitting $1,548 per sq ft (psf) versus $1,051 psf for resale units.
\nResale prices within these areas climbed 1.6% last year.
\nViewing restrictions amid the COVID-19 pandemic in 2020 also dampened the resale market. Prospective buyers, for instance, were not allowed to view homes in person during the circuit breaker period from April to June.
\nSun explained that many buyers prefer to personally view a resale home to check its condition, while new launches are acquired on plan since they are yet to be completed.
\nAnalysts expects demand from upgraders to continue this year as HDB resale prices rose 5% last year, or its steepest growth since 2012 when values increased 6.5%.
\nA slew of HDB policy changes introduced in the last two years are taking effect, which include enhancing Central Provident Fund (CPF) Housing Grant, allowing buyers greater flexibility in using CPF money to acquire older flats, raising income ceilings and allowing bigger home loans for eligible buyers.
\nSuggested read:\u00a0New Launch Property vs Resale Condos in Singapore: Which is Better?
\nWith this, HDB resales increased 4.4% from 23,714 units sold in 2019 to 24,748 units last year or its highest in eight years.
\nThe initial loan payment for new launches under construction are also way lower due to the progressive payment scheme, said Wong Xian Yang, Associate Director of Research for Singapore and South-east Asia at Cushman & Wakefield.
\nThis is where home buyers pay for a property based on its stage of construction.
\nAnalysts, however, believe that the price gap in suburban homes is unsustainable as this may make resales more appealing to cost-conscious buyers.
\nPrices of new launches within the prime or core central region, for instance, started to drop in 2020 after the gap widened by as much as 47% in 2018, said Colliers International\u2019s Head of Research (Singapore) Tricia Song.
\nAnd this trend may be seen in the suburban areas also.
\n\u201cThe widening gap indicates resales could represent more value for money on a per square foot basis, so I think more demand will shift to resale homes,\u201d said Song as quoted by ST.
\nWong added that the resale market may also see more interest should the en bloc market begin to stir as developers look to acquire land on the back of dwindling unsold inventory.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s Listings, Project Reviews and Guides.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Widening price gap between new condos, older units in suburban areas unsustainable<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Widening price gap between new condos, older units in suburban areas unsustainableAnalysts expects demand from...<\/p>\n","protected":false},"author":1,"featured_media":120392,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/02\/Residential-apartments-in-Singapore-v2.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vjN","jetpack-related-posts":[{"id":123233,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-upgraders-on-a-condo-buying-spree\/","url_meta":{"origin":120391,"position":0},"title":"HDB upgraders on a condo buying spree","date":"November 15, 2021","format":false,"excerpt":"\r HDB upgraders on a condo buying spreeIn the first nine months\u00a0of 2021, 7,169 buyers with HDB addresses\u00a0purchased new and resale private homes, a 21% increase from the same period last year. The rapid increase in Housing and Development Board (HDB) resale prices has enabled HDB upgraders to easily acquire\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/Buildings-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":107202,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/8-most-affordable-new-condos-for-hdb-upgraders\/","url_meta":{"origin":120391,"position":1},"title":"8 Most Affordable New Condos For HDB Upgraders","date":"May 17, 2019","format":false,"excerpt":"\r Despite higher ABSD rates, there are still options in the market that may yet keep your condo dream alive. In this article, we rounded up 8 new projects that hover around the $1,300 psf threshold.\u00a0 The introduction of last year\u2019s property cooling measures has no doubt hampered the housing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2019\/05\/8-most-affordable-new-condos-for-hdb-upgraders4-e1558057671664.png?fit=900%2C259&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":129973,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/land-betterment-charge-rates-for-non-landed-residential-use-raised-by-12-9-more-million-dollar-hdb-flats-sold-in-first-nine-months-of-2022-than-whole-of-2021-and-more\/","url_meta":{"origin":120391,"position":2},"title":"Land betterment charge rates for non-landed residential use raised by 12.9%, more million-dollar HDB flats sold in first nine months of 2022 than whole of 2021, and more","date":"September 26, 2022","format":false,"excerpt":"\r Land betterment charge rates for non-landed residential use raised by 12.9%, more million-dollar HDB flats sold in first nine months of 2022 than whole of 2021, and more20th\u00a0September\u00a0to 26th September 2022 The Singapore Land Authority (SLA) has unveiled the revised land betterment charge (LBC) rates for the period 23\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/09\/singapore-hdb-view-1.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":104979,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/treasure-at-tampines-to-launch-at-an-average-price-of-1280-psf\/","url_meta":{"origin":120391,"position":3},"title":"Treasure at Tampines to launch at an average price of $1,280 psf","date":"March 14, 2019","format":false,"excerpt":"\r Artist\u2019s impression of Treasure at Tampines, an upcoming launch with 2,203 condo units. Singapore\u2019s largest condominium to date, Treasure at Tampines, will be launched for sale this Friday (15 Mar), with units carrying an average price of around $1,280 psf. Jointly developed by Sim Lian Holdings and Sim Lian\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":106931,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/older-hdb-flats-are-still-in-demand\/","url_meta":{"origin":120391,"position":4},"title":"Older HDB Flats Are Still In Demand \u00a0","date":"May 8, 2019","format":false,"excerpt":"\r Resale of older HDB flats continue to be on the rise amid lingering concerns of decaying leases. Older HDB flats that are 40 years and older continued to be in demand in Singapore, with a record 2,537 of such flats transacted in 2018, according to a study by property\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":120413,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-private-home-sales-jump-32-2-in-january\/","url_meta":{"origin":120391,"position":5},"title":"New private home sales jump 32.2% in January","date":"February 16, 2021","format":false,"excerpt":"\r New private home sales jump 32.2% in JanuaryNormanton Park\u00a0emerged as the best-selling project in January, shifting 625 units. It was followed by\u00a0Parc Central Residences EC\u00a0and\u00a0The Reef at King\u2019s Dock, which moved 417 and 221 units, respectively. New private home sales in Singapore jumped 32.2% to 1,609 units in January\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/02\/Normanton-Park-1.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120391"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=120391"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/120392"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=120391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=120391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=120391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}