PropertyGuru Survey: Despite perceived rising prices, Singaporeans are able to afford property

●      Singaporeans are able to afford property despite finding prices high

●      Demand for executive condominiums has grown in popularity among upgraders

●      Younger Singaporeans are moving out of their parents' homes earlier

SINGAPORE, 23 April 2019 - 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 Survey - citing increased affordability, ease of getting financing, good long-term prospects, and government policies as key reasons for their optimism.

Conducted in H2 2018, the Sentiment Index, a score which measures current real estate satisfaction, affordability, real estate climate, interest rate situation, perceived government efforts, and property prices, increased to 45 from H1 2018's score of 39.

Jeremy Williams, Chief Business Officer, PropertyGuru Group said, "With prices in the private property market starting to see declines from cooling measures, and the HDB resale market remaining flat, buyers are likely to consider entering the market in 2019. Furthermore, with at least 40 new launches expected to hit the market this year, private property buyers will have plenty of options to choose from.  Despite macroeconomic uncertainties, we see from our sentiment survey that there remains a firm belief in the long-term potential of Singapore's property market."

41 percent of the respondents indicated satisfaction with Singapore's real estate climate due to the long-term prospects for capital appreciation, stable real estate market, and local economy. Interestingly, more than half of the respondents who are satisfied with the real estate climate are PMEBs (Professionals, Managers, Executives and Businessmen) aged 30 to 49 years, drawing medium to high incomes and are married with children.

"Many within this demographic group have experienced what we call the ‘first bite of the cherry', having made some money when selling their matrimonial home that has enabled them to upgrade to their next home. As such, these individuals are most likely to view real estate as a means of growing their nest egg for the future," Williams added.

However, for 39 percent of those surveyed, restrictive government policies remain a matter of contention and there is rising dissatisfaction not only with increasing property prices but also with small unit sizes that come with these high price tags.

Properties are affordable and value-for-money despite perception of high prices

While 88 percent of the Singaporeans surveyed believe that property prices are high and 72 percent expect these to increase in the next six months, a significant proportion (66 percent) see property in Singapore as not only affordable but also good value for money. In fact, 64 percent shared that they are able to buy a home at the current prices and within their current incomes, with 27 percent intending to buy a home in the next year.

Executive condominiums (ECs) are popular among property upgraders

Compared to H1 2018, there has been an increase in respondents' intention to buy a condominium (by 22 percent), landed property (by 20 percent), and mixed-use development (by 32 percent), within the next six months. For those keen on upgrading to private property, positive perception rose the highest for ECs (by 6 percent) as these are available at relatively affordable prices compared to increasingly expensive condos. ECs are also a favourable option for middle-income families who aspire to own private homes and enjoy long-term capital appreciation prospects.

Millennials are able to afford homes earlier

There is a growing trend of young Singaporeans moving out of their family homes earlier. At least 24 percent of millennials who moved out of their parents' homes were aged 27 and below, with two in three respondents owning their first property between the age of 28 and 34 years. The increased affordability could be due to the rise of co-living concepts where people rent or purchase properties together, lowering the price of the overall unit and making it more achievable.

Property seekers, particularly first-time buyers, are advised to time their purchases to the ebb and flow of property prices and policy changes, such as cooling measures and property tax rates. In addition to assessing future prospects of the preferred location, PropertyGuru recommends that buyers have sufficient savings for a down-payment and are able to service their property mortgage loan in the long-term - after accounting for renovation, stamp duty, and setting aside six to 12 months of salary for emergencies.

- END -

For further queries or media interviews, please contact:

About PropertyGuru's Consumer Sentiment Survey

Conducted half-yearly since 2009, PropertyGuru's Consumer Sentiment Survey 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 H2 2018 survey saw 643 respondents in Singapore and more than 3,400 respondents across Southeast Asia.

About PropertyGuru Group

PropertyGuru Group is Asia's leading property technology company and the preferred destination for over 25 million property seekers looking to find their dream home, every month. The Group equips property seekers with the widest selection of homes - over 2 million at any point in time, actionable insights and innovative solutions that empower them to make confident property decision across Singapore, Malaysia, Thailand, Indonesia and Vietnam.

PropertyGuru.com.sg was launched in 2007. It revolutionised the Singapore property industry by taking it online and empowered property seekers by bringing increased transparency to the property search process. Over the last 12 years, the Group has grown from a regional property media powerhouse to a high-growth technology company, with a robust portfolio of No.1 property portals, award-winning mobile apps, best-in-class developer sales enablement platform - ePropertyTrack, and a host of industry-leading property offerings such as awards, events and publications - across multiple countries in Asia.

For more information, please visit www.propertygurugroup.com;

LinkedIn: https://www.linkedin.com/company/propertyguru;

Twitter: @SGPropertyGuru