Home buyers undaunted by cooling measures, most will not defer property purchase year: PropNex

In April 2023, the Singapore residential property market was impacted by a new round of property cooling measures and heightened market uncertainties. PropNex Realty conducted their annual Home Buyers’ Sentiment Survey Report, surveying more than 450 prospective home buyers to assess their housing needs and preferences. The report revealed that 56% of respondents do not plan to defer their property purchase this year.

In comparison, 44% of respondents said they will put their purchase decision on hold, with 48.8% citing higher property prices as the main deterrent. Other reasons for delay included limited buying options at the time, HDB flat owners still locked in their minimum occupation period, and insufficient savings.

They include shopping centres like Woodlands Mall, The Star Vista, Jem, Bugis Junction, City Square Mall, Orchard Road and more. These shopping malls also offer multiple dining options, entertainment options and services to make shopping convenient for the residents of the Tengah Plantation EC. Furthermore, many of these shopping centres have their own loyalty programmes that allow shoppers to enjoy additional discounts and rewards. With the large variety of options available, people living in the EC are sure to find something that suits their budget and lifestyle best.

Private home price indexes rose 8.6% in 2022 and 10.6% in 2021, an increase of 3.3% q-o-q in 1Q2023. Most of the survey respondents already owned at least one property, with 60.6% of them holding one property and 10.5% owning two properties. Meanwhile, 23.7% said that they were not property owners.

Based on the survey, respondents overwhelmingly believed that private property prices would not fall in 2023 (83%), as well as 56% believing that HDB prices would remain stable. With developers facing higher land costs, construction costs, and borrowing costs, this leaves them little room for price cuts. On top of this, the harmonisation of floor area definitions in September of last year may further reduce total saleable area, thus firming up property prices.

36% of respondents cited a housing budget of $1 million to $1.5 million, with 24% stating a budget of $1.5 million to $2 million. Many HDB upgraders are still finding suitable options within that price range.

The survey also showed that prospective buyers are looking more towards new launch projects instead of resale properties. 84% of respondents believe new condo units appreciate at a faster pace and that they are willing to pay a premium price for a brand new property and facilities.

Moreover, 75% of respondents cited various issues with their current home, with the majority of complaints being that their current home was too small (29.4%). Other dissatisfactions were lack of amenities and facilities, the distance from work (17.2%) and the location (14.6%).

It is clear that buyers are highly valuing green features for their eco-lifestyle, with 80% of respondents affirming such features are important. However, they aren’t as ready to pay a premium price for these features.

The survey findings display a trend for sustainable pricing and will ultimately benefit the consumers. Despite higher property prices and other cost-push factors, many developers will price their units in tune with the prevailing market sentiment. By understanding the needs and preferences of home buyers, property transactions will eventually take off at a more measured pace.