Really, say bye bye to that cheap condo

According to a DTZ report, more private home buyers are spending $1m and more on properties. That's another nail in the coffin for the 'cheap' sub-$1m condo. That's pretty obvious going by recent data released by the URA, private home prices are at an all time high. There aren't that many properties selling for under $1m right now.

The DTZ report also found that buyers with HDB addresses who bought units worth $1million and above increased from 36% in Q1 to 43% in Q2. Purchasers with private address also increased from 69% in Q1 to 73% in Q2.

The analysis also found out that buyers from Malaysia, Indonesia, China and India made up a whopping 69% of total transactions by foreigners and PRs in Q2 2010.

Going by the current trend, we are seeing less and less new private homes transacting at $750psf and below. In May, there were 58 such transcations, in June, 41 and last July saw only 31. Check out our Private Residential units launched and sold (by Month) chart above. July also saw one of the highest transactions for mid-end units (light-green) priced from $1,001 to $1,500 psf.

Looks like the time is ripe for launching Executive Condos as demand for affordable will be greater now that prices are at an all time high.

Then again there aren't that many mass market condos around. Perhaps with the launch of NV Residence in Pasir Ris we could see the return of the sub-$1m condo. Stay tuned.

As posted in by Cheryl Han


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