Higher ratio of HDB dwellers goes for small private units

[SINGAPORE] A larger proportion of private apartments and condos bought by those with HDB addresses in the first quarter were smaller units of up to 800 square feet, compared to buyers with private addresses, shows a caveats analysis by DTZ.

Buyers with HDB addresses acquired a total of 892 non-landed private homes in the first quarter of this year. Of these, 453 units or 51 per cent were for units of up to 800 sq ft, up from a 44 per cent share for the whole of last year. The proportion has been climbing steadily in recent years, from 25 per cent in 2010 to 32 per cent in 2011 and 36 per cent in 2012.

DTZ's South-east Asia chief operating officer Ong Choon Fah said: "Those with HDB addresses could be buying a higher proportion of smaller units as the investment sum is much smaller; it comes down to affordability and managing risks. Morever, if they buy from developers, they enjoy progressive payment terms i.e. they pay for the purchase price according to the phases of the project's physical completion. If they are buying for investment, they are unlikely to want to sell until after the project has been completed - as typically, you see a price spik…