HDB buyers scouring for resale deals in prime districts

By
Michael Lim
,
Tay Hock Meng
/ The Edge Property
|
November 20, 2015 10:00 AM SGT
Discerning buyers who have been on the lookout for a good buy have managed to find a number of attractively priced resale 99-year leasehold, 999-year leasehold and freehold properties in the prime residential districts of 9, 10, 11 and as well as in the downtown core and Sentosa Cove, collectively known as the Core Central Region (CCR). Some of the units were transacted at prices that are close to or even lower than new suburban and city fringe projects.
Projects with the highest sales volume in prime districts
Project Name
Tenure
Completion
Avg Price (S$ psf)
Sales Volume
Avg Rent (S$ psf pm)
Rental Volume
Rental Yield (%)
99 years
1998
1,237
8
3.4
23
3.3
99 years
1998
1,312
6
3.7
30
3.4
Ridgewood
999 years
1981
1,195
5
2.8
57
2.8
Freehold
1999
1,193
5
2.8
31
2.8
Casabella
Freehold
2005
1,295
4
3.5
9
3.2

Source: URA, The Edge Property

An increasing number of these purchasers have HDB addresses. According to Nicholas Mak, executive director of research at SLP International, District 10 appeared to be the most popular among such buyers.
In the first nine months of 2014, buyers with HDB addresses accounted for 99 transactions in District 10, 92 in District 9 and 50 in District 11. In downtown core, (District 1), buyers with HDB addresses accounted for 36 purchases.
From January to September this year, District 10 was still the most popular, with 107 transactions by those with HDB addresses, followed by District 9 (72) and District 11 (62), according to SLP Research. The downtown core saw 24 deals, and Sentosa Cove had four deals.
“Most HDB buyers that I have come across are actually investors,” says Bruce Lye, managing director, SLP International’s SRI5000. “They will typically look for 999-year leasehold and freehold prime developments that are in the $1.5 million to $2 million range.”
In fact, that is where the majority of the deals have been. According to SLP Research, those with HDB addresses contributed to 172 transactions (65.9%) of non-landed properties priced below $2 million in the CCR for the first nine months of this year. This was higher than the 165 deals (60.2%) for the first nine months of 2014.
For example, a 1,356 sq ft three-bedroom unit on the 16th floor of one of the towers at 999-year leasehold Valley Park was sold for $2.09 million ($1,541 psf), according to a caveat lodged on Oct 5. Another similar sized unit on the...