Due to the cooling measures introduced by the Singapore Government, smaller condos, particularly, those with smaller quantum has become more popular among Singaporean buyers lately. The new buyer stamp duty regulations as well as the TDSR restrictions has caused buyers to move to smaller units.
Smaller Condos popular
Particularly, condos which are outside the central core region receive good very good response from the buyers and investors. A data indicated that shoebox units have received very good response from the buyers. Private properties under $1.0 million shot up from 31 percent in 1st quarter 2013 to 38 percent in the 2nd quarter. Also, private properties from $1.0 million to $1.5million also see their increases as well.
Experts indicated that the upwards trend in shoebox units to be due to the fact of the TDSR. TDSR would mean that buyers are more restricted on loans and there is a portion of investors who can only look at smaller units now. The jump in purchases of private condominium under one million was also due to the fact that there are many new launches of shoebox units lately which coincide with the timing which the TDSR was announced.
Why are smaller condos popular?
Experts have also indicated that smaller condos such as shoebox units are picked up by many HDB upgraders. The portion of buyers with HDB address make up 62.7 percent of shoebox unit buyers. Now that Riverbank at Sengkang is launching soon, it will have one bedroom units available for sale. It should receive very good response as the price which the developer has bid for the land is very low which would mean the prices of the condo will be low.