He added that some buyers see private properties as “a good investment (with) a potential to be able to build their wealth over time”.
“The aspiration to buy and upgrade into private property remains very strong,” said Mr Lim.
“And as long as one has the financial means and buys within their affordability, new launch private housing becomes increasingly more attractive to this group of buyers, compared to public housing.”
COPING WITH HIGHER INTEREST RATES
Mr Ryan Chia and his wife bought their S$1.2 million condo in Hougang in 2021, as it was near several schools and their parents’ homes, which were important considerations.
“We are preferably looking to stay here for about maybe 10 years or so,” said Mr Chia, who has a baby boy on the way.
However, he has been hit hard by rising interest rates.
“Back then when I took out the loan, the interest rate was about 1 per cent. So the projected monthly instalment is about S$3,100,” said Mr Chia, adding that the interest rate has increased dramatically in recent years.
“But right now the interest rate, because it’s a floating interest rate, is about 4.5 per cent. So, we’ll come close to maybe S$3,900 to S$4,000 for monthly instalments.”
Mr Chia is considering changing his loan to a fixed interest rate of about 3.5 per cent, so he can better project the monthly instalment and plan his finances.