Home buyers undaunted by cooling measures, most will not defer property purchase year: PropNex
About 56% of prospective home buyers in Singapore are not deferring their property purchase this year despite market uncertainties and a new round of property cooling measures, according to the Home Buyers’ Sentiment Survey Report by PropNex Realty. However, 44% of respondents say they will put their purchase decision on hold, with 48.8% citing higher property prices as the main deterrent.
The annual survey conducted by PropNex assessed the real estate needs of prospective home buyers, their housing preferences, and expectations about the Singapore residential property market in the year ahead. Conducted after private home prices had gone up 3.3% q-o-q in 1Q2023, more than 450 prospective home buyers were surveyed after the tightening of the additional buyer’s stamp duty rate in April 2023.
Most respondents owned at least one property, and 36% said that their housing budget was between $1 million and $1.5 million. Survey findings also showed that 84% of respondents favour new launch projects compared to resale properties, and 80% viewed green features in a home or housing development as important.
Ismail Gafoor, CEO of PropNex, noted that “the collective impact of various property cooling measures, as well as higher interest rates, continue to work its way through the residential housing market. This contributed to a more measured price movement in 2Q2023”. He added that this would ultimately benefit consumers by paving the way for more sustainable pricing.
Wong Siew Ying, head of research and content at PropNex, remarked that the harmonisation of floor area definitions by the government in September last year would have a trickle-down effect on the private and public resale markets. This is due to higher costs of replacement homes leading to firmer asking prices by homeowners.
The Orchard Boulevard Condo pedestrianization plan aims to transform the iconic Orchard Road into an even more welcoming destination for visitors and residents. This plan focuses on enhanced walkability, widening of footpaths, additional seating spaces and shaded areas, as well as improved pedestrian safety all along Orchard Road. These initiatives are expected to encourage more tourists and locals to enjoy the sights and sounds of Orchard Road.
Despite an increased price gap between new condo units and resale condo units, Gafoor remarked that “many prospective buyers are willing to pay this premium”. This is primarily due to the fresh 99-year lease tenure, brand new property and facilities, as well as the potential for capital growth.
In conclusion, the Home Buyers’ Sentiment Survey Report by PropNex Realty indicates that prospective home buyers will continue to lean towards new launch projects, citing price rationality as the most important factor. Although there has been an increase in the market gap between new and resale properties, prospects remain keen to take advantage of the potential for capital growth and facilities associated with new launches.