Chart of the Day: HDB owners bought 10,517 private homes in 2017

HDB owners were attracted to private home enclaves in the suburban areas.

This chart from Edmund Tie & Company (ET&Co) shows the buyers with HDB addresses bought 10,517 units in 2017, higher by 11.34% than 9,446 units in 2016, although the increase could be higher as some buyers were not identified.

According to its Q4 2017 housing report, the quantum of the homes purchased also moved up in 2017, compared to 2016. More properties transacted in 2017 were in the higher price bands.

In contrast, properties transacted for $1.5m or less in 2016 accounted for 86.4% of total units transacted. In 2017, the proportion declined to 80.5%.

ET&Co research senior director Lee Nai Jia noted that based on the caveats lodged in 2017, buyers with HDB addresses tend to purchase private projects in districts that are close to upcoming growth clusters. "In the secondary market, buyers were attracted to private residential property enclaves in the suburban areas. District 19 (Serangoon Garden, Hougang and Punggol) will continue to be popular, with the development of the digital district of Punggol and the Bidadari Housing Estate."

"Moving forward, the improvement in sentiments and economic outlook will support more sales. However, the continued decline of HDB resale prices may affect the demand of upgraders, especially in H2 2018," Lee added.