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Some tough decisions await HDB upgraders

Many will be caught between flat resale and sub-par rental markets

Published on Jun 2, 2014 9:30 AM
Private condominiums and HDB flats in the eastern part of Singapore. The vacancy rate in the first quarter for completed units in the eastern region almost doubled, from 3.4 per cent to 6.1 per cent. -- ST FILE PHOTO

FOR a health check of the private residential market, an investor needed only to check out the sales at an upmarket condo project in Ang Mo Kio when it was relaunched recently.

The developer attracted scores of buyers in a flat market - but only after slashing prices by 12 per cent.

The discounting lends credence to the forecasts made by some property analysts that private residential prices may fall by between 10 and 15 per cent over the next two years.

There are a range of issues feeding into this narrative, from both the supply and demand sides of the equation.

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Background story

The big question for many is how the market is going to cope with the deluge of completed units coming onstream between now and 2016. That may, in turn, depend on how HDB home owners who bought private units have fared.