HDB upgraders help boost new condo prices in suburbs

Price gap between new and resale units in this region stands at 47%, widest in 25 years

Engineer Emilia Wong and her husband Md Faizal Salim, a civil servant, upgraded to a new three-room, 95 sq m condo at Le Quest in the west. They bought it for $1.4 million and are paying a monthly loan instalment of almost $4,000 for it. They sold th
Engineer Emilia Wong and her husband Md Faizal Salim, a civil servant, upgraded to a new three-room, 95 sq m condo at Le Quest in the west. They bought it for $1.4 million and are paying a monthly loan instalment of almost $4,000 for it. They sold their five-room, 110 sq m HDB flat in Taman Jurong for $570,000 after it reached the five-year point in 2019. ST PHOTO: YONG LI XUAN
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The price gap between new private homes and older "pre-loved" ones in the suburbs has widened further on the back of a buying spree from HDB upgraders armed with cheap mortgages.

New homes typically command a premium over resale units, due in part to ever-increasing prices for development land, but the overall differential widened last year to about 37 per cent from 32.4 per cent in 2019.

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A version of this article appeared in the print edition of The Sunday Times on February 14, 2021, with the headline HDB upgraders help boost new condo prices in suburbs. Subscribe