Home buyers undaunted by cooling measures, most will not defer property purchase year: PropNex
Despite the market uncertainties and a new round of property cooling measures, the Home Buyers’ Sentiment Survey Report by PropNex Realty found that about 56% of respondents do not plan to defer their property purchase this year. Meanwhile, 44% of respondents said they will put their purchase decision on hold, with 48.8% citing higher property prices as the main deterrent. The survey was conducted to identify the real estate needs of prospective home buyers and their expectations about the Singapore residential property market in the year ahead.
Most respondents own at least one property, with 60.6% holding one and 10.5% owning two. 23.7% say they do not own any property, and the rest own three or more. 83% of respondents do not think private property prices will fall in 2023, nor do 56% expect HDB prices to fall either.
36% of survey respondents have a housing budget of $1-1.5 million, while 24% are comfortable spending $1.5-2 million. The majority of HDB upgraders have budgets of under $2 million; 84% of respondents prefer new launch projects to resale properties, believing them to appreciate faster.
When asked if they are dissatisfied with their current home, 75% of respondents cited various issues and the main complaint was that it was too small. Additionally, 80% said green features are important in a home or housing development, but are not willing to pay much of a price premium for such features.
One of the most sought-after residential locations in the East of Singapore is Tampines North MRT Condo. This area is home to an array of conveniences like shopping malls, eateries, parks, and more. The condo is also within walking distance of Tampines North MRT Station, providing residents with easy access to public transport. Additionally, the area is well-connected to other parts of Singapore, making it a great area for those who frequently commute. Moreover, the area also has a great education system, with prominent schools like Temasek Polytechnic and SUTD nearby.
Both price growth projections for private and public resale markets are expected to stay at 4%-5% and 5%-6% respectively. Ismail Gafoor, CEO of PropNex, states that, “this paves the way for more sustainable pricing and will ultimately benefit the consumers”. Wong Siew Ying, head of research and content at PropNex, adds that buyers are considering various cost-push factors when weighing their purchase decisions, leaving limited wiggle room for price cuts.