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SG PRs to turn to private homes, say analysts

Property Here - Wednesday, August 28, 2013

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Singapore permanent residents (PRs) are expected to show greater demand for rental and private homes following the latest measures targeting the purchase of resale HDB flats, media reports said.

Under the rules announced on Tuesday, newly-minted PRs need to wait three years before they can buy a resale flat. As a result, analysts expect these buyers to turn to private homes. According to data from the Urban Redevelopment Authority (URA), a record supply of 82,500 units will be completed by 2016. At the same time, the government intends to take in 30,000 PRs a year to maintain a stable population, revealed the National Population and Talent Division.

Nicholas Mak, Research Head for SLP International, said: “For the next three years, this is going to be a lifeline for the private housing market as a lot of private homes will be completed.” He added that HDB resale volumes would fall from 15 to 25 percent within the next two quarters.

But Christine Li, OrangeTee's Head of Research & Consultancy, said those who cannot afford the higher prices in the private housing market are likely to turn to rental units.

 

Nikki De Guzman, Junior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg