A recent survey by PropNex Realty has unveiled a significant sentiment among HDB homeowners in Singapore: more than a third feel priced out of the private housing market. This finding stems from a survey conducted with 1,250 existing HDB homeowners, shedding light on their attitudes towards upgrading from public to private housing.
Key Findings from the PropNex Survey
- Affordability Concerns: Approximately 36% of respondents believe they will never be able to afford a private home. An additional 18% think it will take them 5-10 years, and 10% estimate over 10 years before they can upgrade to private housing. Only 6% foresee upgrading within the next 12 months.
- Aspiration to Upgrade: Despite affordability concerns, many homeowners still aspire to upgrade. About 21% hope to move into a larger HDB flat, while 27% aim for a larger private residential property in the future.
- No Immediate Plans: 38% of respondents have no immediate plans to move, and 8% are considering downsizing.
- HDB Flats as Staple Housing: PropNex CEO Ismail Gafoor emphasizes that HDB flats remain a staple for most Singaporeans, but there is a strong aspiration to own private homes.
- ABSD Regime: The survey highlights that high home prices and the Additional Buyer's Stamp Duty (ABSD) regime are significant hurdles. HDB upgraders currently need to pay a 20% ABSD upfront before applying for remission, which deters many from upgrading.
- Influence of High Private Home Prices: Private home prices have risen by about 51% since 2017, with many new launches deemed unaffordable by survey respondents. This has led to a preference for upgrading to larger HDB flats rather than private homes.
Housing Budget and Market Trends
- Housing Budget Constraints: About 62% of respondents have a housing budget of less than $1 million, 21% between $1 million and $1.5 million, 10% between $1.5 million and $2 million, and the rest over $2 million. These budgets often fall short of the current private housing market prices.
- Transaction Data: Average prices of new non-landed private residential units in suburban areas (OCR) are around $1.9 million, and resale units are about $1.5 million. In contrast, HDB resale flats are significantly more affordable.
- Reluctance to Sell: Over half of the homeowners are not willing to sell their flats at a discount, with 87% expecting to sell at a premium. Most homeowners view their flats as a home, a retirement nest egg, and an investment rather than a store of wealth.
Interpretation and Call to Action
This survey highlights the ongoing challenge of housing affordability in Singapore. The desire to upgrade to private housing is strong, but financial barriers remain significant. The high prices and ABSD regime create substantial obstacles, leading many to remain in public housing longer than desired.
For prospective home buyers and current homeowners, understanding these market dynamics is crucial. If you are considering upgrading or need advice on navigating the current housing market, reach out to me for personalized guidance. Stay updated on market trends and explore the best options tailored to your needs.
Summary Highlights:
- 36% of HDB owners feel they can never afford private housing.
- 21% aspire to move into larger HDB flats, 27% into larger private homes.
- High home prices and ABSD regime are major hurdles.
- 62% have a housing budget below $1 million.
- Private residential prices have risen by 51% since 2017.
If you have any questions or need further insights, feel free to contact me for the latest updates and expert advice on the Singapore property market.