Demand for mass-market condos backed by good fundamentals.

More people are choosing non-landed private housing options as HDB resale values and household median income increase.

About half of all condominiums sold in Singapore are mass-market condominiums. This segment has a significant impact on the market dynamics and price trends of the private housing market.

Mass-market condominiums are all non-landed residential properties, excluding executive condominiums, located in the Outside Central Region. These condominiums are usually gated communities that offer amenities such as private security, landscaping, parking, swimming pools, gyms and other recreational facilities.

Price Trends
After a decline of four years from 2013 to 2017, the private housing price index began to rise in Q3 2017. In the last five years, OCR’s private non-landed residential property prices have risen by 39.8%. This is higher than the 34.3% increase in the private non-landed housing index on the entire island. OCR condos prices grew strongly from Q3 2022 to late 2021, largely due to the increase in HDB flat prices.

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Renting Trends
Rents for non-landed residential property have increased faster than prices in the past five years. The rental index of private non-landed properties increased by 45.2% between Q4 2017 and Q4 2022. This is higher than the rise in price index, which was 34.3%. The OCR Non-landed Housing Rental Index saw the highest growth, at 55.9%.

Market Size
The mass market segment, among the three non-landed private property market segments has consistently been the most active in terms of the number of housing units sold over the last 19 years. The OCR is the largest region in Singapore, covering all five regions.

Buyer Profile
HDB upgraders are more likely to choose suburban condominiums than other types of private housing. In 2022 45% of mass market condo buyers were HDB upgrades, proving that HDB upgrades do not dominate the OCR private housing market.

The conclusion of the article is:
The mass-market condos are a good way to upgrade HDB flats. Demand and prices are supported by solid market fundamentals, such as the interest of HDB investors and upgraders, and by rising HDB resale values and median household income.

In 2023, 30-40 private housing projects will be launched. Around 30% of these units are located in the OCR. The OCR will be able to accommodate the growing demand for private housing without having an oversupply.


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