More people in Singapore are expecting home prices to increase over the next five years, according to PropertyGuru Group’s 2H 2017 Consumer Sentiment Survey that was published on Thursday (25 January).
For instance, 49 percent of those polled are anticipating price hikes, up from just 29 percent in 1H 2017. In particular, 67 percent are confident that condominium prices will increase in the next five years.
In descending order, the top three places to purchase or rent a residential property for respondents are District 15 (East Coast and Marine Parade), District 11 (Newton and Novena) and District 19 (Punggol, Sengkang and Hougang).
Aside from that, 58 percent of those polled consider the city-state’s property market as stable, but 51 percent believe there is a supply glut of private dwellings.
Nevertheless, more respondents intend to purchase private homes, both landed and non-landed, during the next five years. The buying sentiment for this type of houses may have improved amidst the ongoing collective sales fever, with total en bloc sales reaching over $6 billion last year.
PropertyGuru Group CEO Hari V. Krishnan underscored that residents of en bloc sites, which have been acquired by developers, will need new homes and might re-invest part of their proceeds in investment properties.
“With the market poised to bounce back over the course of 2018, consumers are also expressing greater optimism. Purchase intent for private properties is on the rise as consumers look to catch the next crest of the property cycle.”
However, he cautions potential buyers to adopt a prudent mindset this year. “Those looking at investment properties should continue to keep an eye on vacancy rates and be wary of overstretching on finances,” Krishnan added.
This article was edited by Keshia Faculin.