Home buyers and real estate investors are less optimistic about property affordability than they were in the first quarter of this year, according to the results of a survey on property market sentiment, compiled by PropertyGuru.

The survey shows that 79 percent of all respondents believe property in all categories in Singapore is expensive, an increase from 75 percent in the previous quarter.

Conducted in June 2011, the survey was taken by over 2,200 respondents, with a separate analysis of first-time home buyers.

“Our latest quarterly survey gives an interesting insight into current sentiment towards the property market. Whilst consumers remain bullish about rising market prices, they are increasingly concerned about ‘affordability’, adopting a ‘wait and see’ approach and want the Government to take further action,” said PropertyGuru CEO Steve Melhuish.

Of the first-time buyers surveyed, 70 percent are aged between 25 and 34, while 36 percent have a monthly household income of S$4,000 to S$8,000.

At the same time, 48 percent of first-time home buyers want to acquire HDB flats and a surprisingly high 42 percent are considering acquiring completed condo units. 64 percent of those planning to buy HDB flats prefer resale flats to Built-to-Order (BTO) flats.
Meanwhile, about 50 percent of all first-time home buyers began their property search seven to 18 months ago. Factors such as price (35 percent), location (29 percent), limited supply (12 percent) and selection process (11 percent) were the primary factors affecting the time taken to buy their first home.

“As a result, we can expect buyers to be more discerning, intensifying their search before making a purchase. PropertyGuru addresses this need by providing the largest database of available property for sale or rent,” said Melhuish.

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