Private homes becoming more sought-after amid forecasted price hike

Keshia Faculin26 Jan 2018

Home prices crop

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.

Sentiment Survey

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.

POST COMMENT

You may also like these articles

Private home prices rebound marginally in Q3: URA

Private home prices across Singapore rose by 0.5 percent quarter-on-quarter in Q3 2017, reversing the 0.1 percent dip in the previous three-month period, according to flash estimates published by the

Continue Reading2 Oct 2017

Private home prices to rise by 3-7% in 2018

Prices of residential properties here are expected to increase by three percent to seven percent next year, reported the Singapore Business Review.According to Analyst Vijay Natarajan from RHB Researc

Continue Reading22 Dec 2017

Private home prices expected to rise by 3-10% in 2018

Property prices in Singapore could rise at a median rate of 5.5 percent.Analysts believe Singapore’s private housing market has indeed rebounded, with prices increasing for two straight quarters fol

Continue Reading23 Jan 2018