As the property scene in Singapore quiets down, foreign buyers trickle while the number of Housing Development Board (HDB) up-graders increase. According to DTZ’s analysis of caveats captured by Urban Redevelopment Authority’s (URA) Realis system, HDB up-graders make up 34 per cent of private home purchases in the second quarter of 2008 (Q2 2008), compared to 28 per cent in the first quarter (Q1 2008).

In Q2 2008, HDB up-graders made up the majority of buyers at The Verve in the Balestier area with 36 units sold to this group. This is followed by 32 units bought by HDB up-graders at Stadia at Yio Chu Kang Road in the primary market. Meanwhile, The Quartz proved to be the most popular with 86 per cent of its buyers comprising up-graders.

With such numbers, it is not surprising that property developers are targeting this segment, with most of them pricing launches at more realistic prices. On top of that, there have been developers arranging for banks to offer attractive mortgage schemes.

HDB upgraders have also been active in Q2 in the secondary market, with prices dropping by 10 per cent to 12 per cent from the previous quarter. In the sub-sale market, the amount of private apartments/condos transacted and bought by those with HDB addresses went up 52 per cent to 152 transactions in Q2 2008.

According to DTZ, HDB upgraders are able to upgrade to private properties easily because HDB resale flat prices continue to rise while prices for some private properties have fallen.