Intent to purchase property remains strong across SEA

·         Average of five out of 10 respondents across the region are looking to purchase a property in the next six months

·         Stable but subdued property affordability sentiment in Singapore, Malaysia, Indonesia and Thailand

·         Overall rate of satisfaction with real estate climate steadily declined

SINGAPORE, 26 Sept 2017 – Consumers across the region are looking to purchase homes in the next six months, despite pessimism around their ability to afford housing in their home countries, according to PropertyGuru Group’s Regional Consumer Sentiment Survey, released today. The findings saw constant scores in Singapore, Malaysia, Indonesia and Thailand, reflecting little change from H2 2016 in consumers’ view of the real estate market.

Intention to purchase a property stable in the region

According to PropertyGuru’s latest Regional Consumer Sentiment Survey H1 2017, 60 per cent of Indonesian respondents expressed the intention to purchase a property in the next six months. Aspiration to own a home in the other markets surveyed also remains high, despite the lower property affordability sentiment cited. 

In Malaysia, 52 per cent of those surveyed say they intend to purchase a home in the near future, followed by 49 per cent of respondents in Singapore, and 43 per cent in Thailand.

While Singaporean respondents are open to the idea of both new and resale homes, prospective home owners in Malaysia, Indonesia and Thailand indicated a preference for new property. Location and perceived safety of the area are also key determining factors that affect property purchase decisions.

Affordability sentiment stable but weak

Despite strong purchase intent, property seekers indicate concerns around their ability to afford homes. PropertyGuru’s latest Regional Consumer Sentiment Survey H1 2017 revealed that Singapore’s property affordability sentiment score remains unchanged at 29 from the previous survey’s results in H2 2016. This is followed by Thailand with a score of 34, Malaysia at 38 and Indonesia emerging at the top, with a score of 52. Malaysia is the only market surveyed which showed a slight increase in its sentiment score from the end of 2016.

“Southeast Asia is one of the fastest-growing real estate markets in the world, with Indonesia demonstrating the strongest optimism in purchase intentions and affordability sentiment among the countries surveyed. The property market in Indonesia is buoyed by a robust economic outlook and stable Rupiah,” said Hari V Krishnan, Chief Executive Officer, PropertyGuru Group.

“In Singapore, we see that intent to purchase homes remain strong, but consumers continue to express concern on their ability to afford homes. Even as the Singapore real estate market looks to recover in 2018, concerns with affordability are likely to continue to hobble the absorption of supply” added Krishnan.

The affordability scores are measured by factoring in consumer perceptions of the real estate market, and a value for money rating. It also takes into account external realities such as the interest rate situation, perceived government efforts and anticipated property prices in the next one to five years.

Overall dip in satisfaction level with real estate climate across the region

Overall consumer satisfaction with the real estate climate has declined steadily across the region, compared to H2 2016. While Indonesian respondents indicated a two per cent dip in satisfaction with the real estate climate (from 65 to 63 per cent), they remain the most optimistic in the region, due to anticipated increases in property prices, and good long-term prospects for capital appreciation. In general, reasons cited for satisfaction with the real estate climate are linked to an outlook for strong capital appreciation.

However, high property prices were also the main drivers for dissatisfaction with the real estate climate in the four markets surveyed. While the majority of factors cited relate to costs and economic performance, Singapore’s results stood out with 32 per cent of respondents citing unfavourable government policies as a cause for dissatisfaction.

About PropertyGuru’s Regional Consumer Sentiment Survey

Conducted half-yearly since 2009, PropertyGuru’s Regional Consumer Sentiment Survey measures property sentiments and expectations around the property market, to enrich decisions by helping consumers, property agents and developers gain a better perspective of the local property market. The H1 2017 survey saw more than 3,100 respondents across Singapore, Malaysia, Thailand and Indonesia.

 --- ENDS ---

For further queries or media interviews, please contact:

About PropertyGuru Group

PropertyGuru Group is Asia’s foremost online property company. Voted by consumers in 2016 as ‘Asia’s Most Influential Brand for Online Property Search’, PropertyGuru helps over 16 million people find their dream home – every month.

Headquartered in Singapore, PropertyGuru.com.sg was launched in 2007 by two entrepreneurs. They had a vision to simplify the property search process and help renters, buyers, sellers and investors make confident property decisions – faster. Since then, it has grown from being a media company to a high-growth technology company, operating a suite a No.1 property portals and award-winning mobile apps across Singapore, Malaysia, Thailand, Indonesia and Vietnam. PropertyGuru also operates renowned project marketing technology platform, ePropertyTrack, and a host of industry-leading property offerings such as publications, events and awards – across eight countries in Asia.     

For more information, please visit www.propertyguru.com