SINGAPORE, 3 March 2020 – PropertyGuru Group, ("PropertyGuru" or the "Group"), Asia’s leading property technology company, today revealed that Singaporeans are more positive about the property market in its bi-annual Consumer Sentiment Study.
The Sentiment Index has increased 5 points from 40 to 45, indicating a positive uptick in sentiment amongst Singaporeans on the local property market. The higher satisfaction level is largely due to perceived government efforts (39 percent) and current real estate climate (52 percent).
In September 2019, the government announced various measures to make public housing more affordable and accessible for Singaporeans, such as the raising of income ceilings to S$14,000 and the newly consolidated Enhanced CPF Housing Grant (EHG) targeted to help first-timer families buying BTO flats.
The study found that younger Singaporeans, aged between 22 and 29, are most optimistic about future property prices. 70 percent of Singaporeans are looking to buy a home in Singapore, most of which, have intentions to buy within the next two years. Future MRT lines (89 percent) and government Master Plans (82 percent) are also cited as key considerations for property purchase.
Dr. Tan Tee Khoon, Country Manager – Singapore, PropertyGuru, said, “Amidst the current macroeconomic headwinds and ongoing COVID-19 situation, we do not expect property prices to significantly drop and we are confident that property prices will remain stable in 2020. Buyers, who are looking to purchase a property this year, should first and foremost consider their needs in their property search and be prudent in their buying decision – calculate their finances and have contingency plans to service mortgage loans in the event of unemployment or an emergency.”
2019 was also the anniversary of the cooling measures the government had introduced which includes Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases. While more than half of Singaporeans think that ABSD is successful at stabilising the property market, 60 percent of respondents also felt that it should be relaxed for citizens buying their second property. Singaporeans also want more leeway when it comes to borrowing for home loans. Just over a third of respondents felt that the ability to borrow 75 percent of a property’s value is too low. Given 72 percent of respondents believe that property prices will continue to increase over the next five years – one inference here, is that the desire for more home financing support will continue to be on the uptrend.
Singaporeans take the lead in Southeast Asia as super savers with 70 percent of respondents indicating that they will start saving before looking for a home to buy. This comes as no surprise, as buying a house is one of the biggest life decisions most Singaporeans will ever make. On the other hand, the younger Singaporeans, who are still in the early stages of their lives, are more likely to start saving only after estimating the cost of the home they intend to buy.
When it comes to home loans, only 18 percent of Singaporeans affirmed that they are very familiar with the process and almost half indicated ‘not being familiar with the paperwork’ as a key challenge they faced. A surprising 40 percent said they were not aware that they can re-finance their home loans. Singaporeans are also turning to online tools such as an Affordability Calculator for help with working out how much they can afford to buy when selecting a property, with more than half indicating that they have used a home loan calculator before.
Singaporeans are becoming increasingly aware of the impact of climate change, and more are open to eco-friendly features for the home. The study found that more than half of respondents are willing to pay more for an environmentally sustainable home. Both solar panels (73 percent) and a smart cooling system (68 percent) top the list of preferred types of sustainable features.
Tee Khoon said, “We are happy to see that sustainability is gaining popularity among home buyers, and to meet the rising demands, more property developers have also incorporated sustainable solutions into their residential projects. Together with new government initiatives such as the HDB Green Towns Programme, we are definitely moving one step closer to the goal of a sustainable future.”
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About PropertyGuru’s Consumer Sentiment Study
Conducted half-yearly since 2009, PropertyGuru’s Consumer Sentiment Study measures property sentiments and expectations around the property market to help consumers, property agents and developers gain a better perspective of the local property market. The most recent study was conducted between December 2019 and January 2020 and saw 985 respondents in Singapore.
About PropertyGuru Group
PropertyGuru.com.sg was launched in 2007. It revolutionised the Singapore property market by taking it online and making property search transparent for everyone. For the past 12 years, PropertyGuru.com.sg has been helping property seekers in Singapore make confident property decisions. With over 5.5 million monthly visits* and 75%** consumer market share, PropertyGuru is the No.1 destination for Singapore homeseekers.
It is part of PropertyGuru Group, Southeast Asia’s leading property technology company and the preferred destination for over 20 million property seekers to find their desired home, every month. PropertyGuru Group of companies empower property seekers with the widest option of over 2 million homes, in-depth insights and solutions that enable them to make confident property decisions across Singapore, Malaysia, Thailand, Indonesia and Vietnam.
Over the decade, the Group has grown from a regional property media powerhouse to a high-growth technology company with a robust portfolio comprising: leading property portals across its core markets; award-winning mobile apps; a SaaS-based sales automation solution, ‘PropertyGuru FastKey’, which is used by property developers to enable end-to-end project management from launch to sales conversion; one of the largest property awards business in the region, ‘PropertyGuru Asia Property Awards’, which sources entries from fourteen markets across Asia.
For more information, please visit propertyguru.com.sg; linkedin.com/company/propertyguru
*Source – Google Analytics data, Jul-Dec 2019
**Source - SimilarWeb - Relative Engagement Market Share, average of Jul-Dec 2019
For further queries or media interviews, please contact:
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Archetype Singapore Anushka Shrivastava / Irene Teoh +65 6603 9000 |
PropertyGuru Group Timothy Beer +65 8355 7208 |