Monday, February 18, 2013

House prices still too expensive: PropertyGuru survey

Feb 18, 2013 -

Driven by concerns that home prices will rise in the next six months, PropertyGuru’s Property Affordability Sentiment Index (ASI) fell further in Q4 2012, based on its latest quarterly Property Sentiment Survey done in collaboration with Blackbox Research which polled 660 online respondents.

Compared with the rest of the year, the ASI was at its lowest for Q4, recording a score of 80 which is 20 points lower from the baseline in Q3 2011. This reflects continued pessimism over housing affordability in the country. Despite this, many upgraders still have intentions to buy HDB flats, probably due to their immediate needs.

A larger number of Singaporeans feel dissatisfied about the real estate market, with 30 percent of respondents being extremely dissatisfied. The majority of those dissatisfied feel that property prices are now too expensive (79 percent), overpriced (76 percent) and unreasonable (56 percent).

Nevertheless, more Singaporeans are becoming convinced of the government’s cooling measures, although they believe more can be done. 

The survey found that one in every three Singaporeans was affected by the cooling measures implemented in October 2012 which placed restrictions on housing loans. Those affected contemplated buying cheaper property or not buying at all.

Meanwhile, sale and rental prices for both HDB and private properties are expected to inch up in the next six months. In fact, 70 percent of respondents believe that cash-over-valuations (COVs) for resale flats will climb.

Among those respondents looking to buy HDB flats, interest was higher for one- to two-bedroom units, while private condos and commercial properties saw less demand. 

For overseas properties, investment interest levels remained steady, with Malaysia as the top destination for Singaporean buyers

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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