HDB upgraders in Singapore to reinforce current surge in condo sales

From January up to end of September, DBS reports that around 7,600 private residential units were sold across the city-state 

An HDB featured the country flag outside their homes to celebrate the National Day. Hit1912/Shutterstock

According to a report published by DBS Group Research, owners of Housing Development Board (HDB) flats, which are subsidised public housing for Singaporeanswill help sustain the healthy momentum of condo sales as they continue to recycle their flats into private homes, reported The Business Times. 

The research revealed that Singaporeans have steered the sales volume up for private residences, which eventually tallied to approximately 7,600 units sold in the year to date, a seven percent increase from a year before. 

Analysts Rachel and Derek Tan of DBS Group explained that this growth indicated stable demand for private homes even with the ordeal brought by the pandemic. 

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By end of 2020, they predict the number of sold units to reach or exceed the 10,000 mark, which will surpass the 2019 sales volume if momentum remains steady. 

Among the possible reasons for the strong sales volume, which could have also incited demand from HDB upgraders, are pent-up demand, low-interest rates and sticky prices. 

Moreover, the sales growth also suggested that with the unemployment risk for Singaporean buyers, most are either “still very cash rich” or are in a manageable situation, which can bode well for the future of Singapore property market.