Channel NewsAsia
Updated: 12/23/2013 17:46 | By Channel NewsAsia

Proportion of PRs buying HDB resale flats drops

Proportion of PRs buying HDB resale flats drops


Proportion of PRs buying HDB resale flats drops

SINGAPORE: The proportion of Permanent Residents (PRs) buying Housing and Development Board (HDB) resale flats has gone down in the last few months.

This comes after new rules to stabilise the HDB resale market were announced in August.

PRs now have to wait three years after obtaining their Singapore PR status before they are allowed to buy an HDB resale flat.

According to HDB, in the three months after the new rules were announced, PRs made up 12 per cent of all HDB resale transactions, with 528 units sold to them.

This is down eight percentage points from January to August, when PRs made up 20 per cent of all HDB resale transactions.

There were 2,581 resale flats sold during that period.

HDB also noted that the decrease is not unexpected, as there are now fewer PRs eligible to buy a resale flat.

It also pointed out the drop may not be solely due to the three-year waiting period.

HDB had earlier introduced other measures to moderate demand, and it said the effects may only be observed in a few months.

One property analyst said that PRs being unable to purchase HDB resale flats may not have much of an impact on the rental market.

Christine Li, head of research and consultancy at OrangeTee, said: "The number who will turn to the rental market instead of buying is unlikely to be big. We also foresee more HDB flats being put up for sale or rent in the coming year. So overall, it would not push up rentals by too much."  - CNA/ms

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