Based on data from the first quarter to the third quarter of this year, buyers with HDB addresses purchased 3876 private residential units, a decrease of about 30% compared to the same period last year.

Despite the overall decrease in the number of purchases, the number of private residences valued over 2 million dollars has increased by 86% compared to ten years ago, rising from 393 to 732 units (excluding executive condominiums). This indicates that some HDB upgraders have increased purchasing power and are investing in higher-value properties in the real estate market.

These data also reveal the purchasing behavior of HDB upgraders in different price ranges. Among them, 112 private residential units were purchased in the range of 3 to 5 million dollars, while 12 units were purchased in the range of 5 to 10 million dollars, including high-end private projects such as Wallich Residence and 19 Nassim.

Surprisingly, some HDB upgraders even spent 13.5 million dollars to purchase units in St. Regis Residences, despite their original HDB addresses. Such HDB upgrader buyers are rare, possibly because these buyers are older and had purchased HDBs earlier in their lives, having already paid off their housing loans.

Some industry insiders have provided explanations for this phenomenon. According to Sun Yanqing, living in HDBs does not necessarily mean that these individuals lack sufficient cash or other assets.

Compared to private condominiums, HDBs have lower costs but higher returns. Therefore, some people choose to retain their HDBs to continue enjoying government benefits and achieve higher returns at lower costs.

In this regard, Lim Jincai, the CEO of Altitude Real Estate, shares a similar view. He believes that this could be because buyers have accumulated sufficient wealth over the years through successful careers, allowing them to make high-value real estate investments. They not only have the financial capability to purchase high-end private residences but also the capacity to bear the associated taxes and additional expenses.

However, it is important to note that if the purchased private residence is not the buyer's first property, they will need to pay additional Buyer's Stamp Duty (ABSD). Since these HDB upgraders already have HDB addresses, they are typically considered Singapore citizens.

According to the real estate policy regulations in April of this year, purchasing a second property requires a 17% stamp duty, equivalent to 2.295 million dollars. If it is the third or more properties, the required ABSD is even higher, reaching 3.375 million dollars.

Regarding the payment of such high ABSD, Lim Jincai has suggested a possibility. He stated that considering the significant amount of stamp duty, buyers may sell their existing HDBs and apply for a refund of the ABSD. This way, they can reduce some of the burden when purchasing high-value private residences.