Sky high condo prices: are sales being funded by parents' retirement savings?

Never mind that it’s way out west - Tengah’s first private condominium development sold out almost all its units over its launch weekend at the end of April.

At an average price of $2,120 per sq ft and a location that’s under the Outside Central Region (OCR) classification, the affordable suburban condominium is starting to feel more expensive.

But despite all our complaints about high property prices and the uncertain global outlook, these sales show that Singaporeans are still willing to fork out serious money for new, unsubsidised private residential properties.

Is this the new normal buyers have to get used to?

In this episode of The Usual Place, Natasha speaks with veteran property analyst and chief research officer at MOGUL.sg Nicholas Mak, and CEO and Chief Investment Officer at financial advisory firm MoneyOwl Chuin Ting Weber.

We chat about who are the buyers driving the sales of these properties, and what’s driving these record new launch condo prices?

Highlights (click/tap above):

1:20 What's driving up condo prices?

4:55 FOMO in buyers driven by agents

7:25 HDB upgraders not main condo buyers

9:56 Who's renting if everyone's buying?

15:28 The myth of constantly rising prices

19:28 Making compromises to make mortgage

31:40 Good debt and what you can afford

37:22 Parents digging into retirement funds for kids

48:00 Why isn't the government stepping in more?

51:36 The similarities between healthcare and property