HDB upgrader deals fall amid pricier condos, costlier mortgages, higher ABSD: OrangeTee
BUYERS with Housing and Development Board (HDB) addresses bought fewer but pricier condos in the first nine months of the year, OrangeTee & Tie’s private residential Q3 report indicated on Tuesday (Oct 17).
The number of non-landed homes bought by HDB upgraders fell 50.1 per cent to 3,876 units between January and September in 2023, compared with 7,766 units during the same period in 2013.
The hampered demand was led by the increase of additional buyer’s stamp duty, in addition to surging mortgage rates and private home prices, said Christine Sun, senior vice-president of research and analytics of OrangeTee.
In light of rising home prices, more HDB upgraders are buying pricier condos now than ten years back.
On transactions worth S$2 million and above by HDB upgraders, the number is 732 for the first three quarters, 86.3 per cent higher than the 393 in the corresponding period of 2013.
The deals of at least S$2 million constituted 18.9 per cent of the total condo transactions by HDB upgraders, higher than the 5.1 per cent in 2013.
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As interest rates are staying higher for longer than markets’ expectations, homeowners are facing steeper monthly payments amid higher living costs.
The affordability threshold of potential home buyers will also be further reduced while more banks are raising the mortgage rates to above 4 per cent, capping gains in housing prices.
“Price growth may remain moderate for the rest of the year,” said the property consultancy, which estimates that overall prices to grow by 4 to 5.5 per cent in 2023.
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OrangeTee also expects the total sales volume, excluding executive condominiums, to range between 17,000 and 19,000 units in 2023. This is lower than the 21,890 units sold in 2022.
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