88% of Singaporeans unhappy over high property prices: PropertyGuru

Romesh NavaratnarajahAugust 3, 2018

Younger Singaporeans are finding it harder to buy a home.

The majority of Singapore consumers are dissatisfied over the state of the property market, revealed PropertyGuru’s latest Consumer Sentiment Survey.

In fact, 88 percent of those unhappy with the market cited high property prices as their key concern.

More: Home buyers looking for Singapore Properties may like to visit our Listings

With this, the sentiment index for the first half of 2018 remained at 39 points, similar to the score achieved in the second half of 2017. The index is calculated based on six parameters including housing prices, satisfaction and consumers’ future expectations of the market.

The survey showed that consumers expect private property prices to increase significantly over the next five years. About 27 percent believe condo prices will grow by over 10 percent, while 25 percent see landed property prices increasing by the same rate. Only 13 percent of the respondents predict that HDB prices will rise by a tenth from current prices.

Given the new property cooling measures rolled out by the government, PropertyGuru chief business officer Lewis Ng expects consumers to take a wait-and-see approach to gauge where prices may go before committing to a purchase.

“With buyers now having to fork out more cash upfront, these recent moves have made it more expensive to consider property as an investment option,” he said. “Sellers looking forward to a market recovery to sell their properties, might feel some frustration as well, especially en bloc hopefuls who did not manage to see their sales go through prior to the measures.”

But even before the measures were tweaked to slow property price growth, only 27 percent felt that the government was not doing enough to make Singapore housing affordable. Around 53 percent believe that the price of newly launched properties by developers should be regulated by the state, while 49 percent want the state to impose more restrictions on foreign ownership.

Almost 50 percent of the respondents said the cooling measures should be relaxed, of which 80 percent called for the reduction of the ABSD imposed on Singaporeans purchasing their second and subsequent properties.

Other policies that respondents want to see relaxed include the caps on percentage of monthly income which can be used to service housing loans – namely Total Debt Servicing Ratio and Mortgage Servicing Ratio.

More: Financial Guide On Affordability: TDSR

Meanwhile, 39 percent of millennials surveyed – or those aged between 21 and 37 – currently live with their parents. A majority (or 66 percent) of these millennials are looking to acquire a home, with the central, northeastern and eastern parts of Singapore being the preferred location of their future homes.

However, 69 percent of millennials revealed that they do not have a structured savings plan to fund their housing purchase. Millennials with no intention to move out of their parents’ home pointed to the lack of adequate savings to buy a home as the main reason for staying with their parents. Other reasons cited include high property prices (33 percent) and not being married, which makes them unqualified for an HDB flat (44 percent).

While monthly CPF contributions may be used for future home acquisitions, but given the property prices in Singapore, Ng advises younger Singaporeans to set aside “a fixed percentage of their monthly paycheck to go towards their home purchase”.

“At the same time, before committing to a home, they need to ensure that they have adequate savings to finance their loans for at least six months to a year in the event they suffer any loss of income,” he added.

 More: Can you afford a condo? Check your affordability now. 

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Everyonedies
Jan 23, 2019
88% do not own homes? lol
Tollss
Sep 01, 2018
If the millennials lack savings for them to purchase their own home and 33 percent cited high property prices …. shouldn’t the government find ways to increase the incomes of the millennials instead of seeking ways to artificially cap the natural appreciation of assets which citizens worked hard to own. From the 60s to 80s/early 90s, home prices in Singapore went up more than 10 folds, no one was complaining and more importantly NO unpopular cooling measures were imposed by the previous generation of government back then. Why now??
V Loke
Aug 07, 2018
The spike in price was particularly prominent with new launches and next spillingover to the resale market. There should be tighter control over the valuation of new launch.
B Lim
Aug 06, 2018
I think the government should do something about the prices of HDB flats as recently some were sold at over 1 million dollars. HDB flats are meant for people to have a roof over their heads and not for investment. Hence, the cooling measures targeting private property prices is unnecessary as it should be left to the market sentiment and for those who have the money to invest but instead more should be done to curb the increase in prices of HDB resale flats.
Cris
Aug 05, 2018
It's pointless complaining abt high property prices when a new HDB flat is almost at par with a leasehold 99 yrs condo in the suburban. The cooling measures is not targeting at HDB new flats. We should be talking about new HDB prices, it's high interest with both HDB & CPF payable to both. Whereas for the private housing, u pay once and direct to the bank. The more we complain, measures is gona step in and nothing is going to affect the new HDB flats. Stop land sales to developers and if there are fears that this and that will happen. You will be surprised to see so many vacant units in 'Old' projects and yet these problems are not tackled. Allow Singaporean to own at least 2 properties.
LP Lim
Aug 05, 2018
How could 88% of Singaporeans be unhappy over high property prices when most are property owners???
L W Ong
Aug 04, 2018
Definitely, if they retired, they cannot even cash out as they will be in negative territory.
mel wu
Aug 03, 2018
Why must the government up the stamp duty can't he lower the stamp duty rate of the property price that make it easy for Singapore to the property of the condo
Vlad
Aug 03, 2018
Considering the Singapore ownership rate of about 90% I am wondering what is in the minds of these 88%? If property prices go down are they going to be happy seeing the value of their assets collapse?
Alan Neo
Aug 03, 2018
the issue should be tackled by raising the buying power of the average Singaporean not buy artificially suppressing the demand .... soon Singapore will be going back to 2nd or 3rd world country when other nations become stronger ....
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