According to PropNex Realty’s Home Buyers’ Sentiment Survey Report, despite market uncertainties and a new round of property cooling measures, 56% of respondents do not plan to defer their property purchase this year. In comparison, 44% are putting their purchase decision on hold, with 48.8% citing higher property prices as the main deterrent. Of those surveyed who currently own at least one property, 60.6% hold one property and 10.5% own two properties, with the rest owning three or more.
The survey also highlighted that 83% of respondents do not think that private property prices will fall in 2023 and 56% do not expect HDB prices to decline this year. When asked about their housing budget, 36% of respondents cited a housing budget of $1 million to $1.5 million, while 24% of them are comfortable with homes priced between $1.5 million and $2 million.
Furthermore, the survey noted that prospective buyers increasingly lean towards new launch projects compared to resale properties. About 84% of respondents say that they believe the value of a new condo unit will generally appreciate at a faster pace compared to older resale properties. Moreover, 75% of respondents cited various issues that they found wanting in their current home, with the main complaint being that it was too small.
Additionally, the URA are also looking into developing the Woodlands Condo area of the city with the development of an integrated transportation network. This network would greatly reduce the amount of time it takes travelers to get around the area. It would also improve traffic conditions in the area. The URA is confident that these two initiatives will help promote greater sustainability and economic growth in the Woodlands area.
Going by the preferred size range of 800 sq ft to 1,200 sq ft for many respondents, the pricing of homes could be anything between $1,660 psf and $2,500 psf. Additionally, 80% of respondents agreed that green features are important in a home or housing development, reflecting a rising awareness of sustainability.
PropNex CEO Ismail Gafoor remarks that the collective impact of various property cooling measures, along with higher interest rates, have contributed to a more measured price movement in 2Q2023. Gafoor adds that this paves the way for more sustainable pricing and will ultimately benefit the consumers.
Wong Siew Ying, head of research and content at PropNex, says developers have had less wiggle room for price cuts due to factors such as higher land costs, rising construction costs, and higher borrowing costs. As a result, this is likely to lead to a reduction in total saleable area for condo projects, with a trickle-down effect on the private and public resale markets.
The survey findings show that buyers are considering both cost-push factors, as well as an “eco-lifestyle”, when looking for a new home. % Moreover, the harmonisation of floor area definitions by the government is likely to lead to firmer asking prices by homeowners.