Singaporeans are expressing strong home-buying sentiments, study shows
Singaporeans are defying the current economic downturn by expressing strong dwelling-buying sentiments even amid rising prices, as revealed by the PropertyGuru Consumer Sentiment Report H2 2021.
The study'southward overall Sentiment Index – which measures current existent estate satisfaction and overall climate, housing affordability, interest rates, perceived government efforts, and belongings prices – increased to 48 points in H2 2021, up by 5 points from 43 in H1 2021.
This uptick is driven by Singaporeans' positive outlook on future holding prices, a fair perception of domicile loan interest rates, and a rise in the Property Affordability Rating, a score that measures consumers' perception of property prices in Singapore today and their power to beget a property in their current prices and income.
Hither are the key findings of the report:
KEY FINDING #one: Buying SENTIMENT REMAINS STRONG DESPITE RISING Domicile PRICES
While ninety per cent of Singaporeans observe property prices high, more than consider themselves able to beget a property in their electric current prices and income, up from 60 per cent in H1 2022 to 65 per cent in H2 2021. In fact, 74 per cent of Singaporeans even so intend to purchase a home in the future despite rising home prices. Among these, 53 per cent intend to buy a home inside the next two years.
Nearly half (46 per cent) of Singaporeans are satisfied with the array of proficient financing options available amid the low interest rate environment. 50-ane per cent of Singaporeans believe this is the best fourth dimension to become the nigh bang for their property cadet in the long term, with 83 per cent expecting holding prices to increase over the next five years. Information technology is also noteworthy that ane in iii Singaporeans (33 per cent) eyeing HDB resale flats are willing to pay Cash Over Valuation (COV) for their preferred property. This willingness is greater amongst older (40 per cent), college-income earners (twoscore per cent).
Central FINDING #2: SINGAPOREANS ARE KEEN TO Make SMART AND SUSTAINABLE LIVING CHOICES
Eighty-two per cent of Singaporeans are willing to consider paying more for an environmentally sustainable domicile, with their acme three sustainability features comprising smart cooling systems (65 per cent), high-insulation windows and doors (sixty per cent), and solar panels (54 per cent). It follows that Singaporeans welcome the Government's new HDB Green Towns Programme, a 10-year plan to brand HDB towns greener and more sustainable, with 2 in 5 (46 per cent) willing to pay more to alive in ane. Eighty-one per cent of Singaporeans besides voiced the need to preserve forested areas from urban development.
Dr Tan Tee Khoon, country director of PropertyGuru Singapore, said, "It is encouraging to see Singaporeans across generations embrace more than eco-conscious home-ownership behaviour to advance sustainability efforts and combat climate alter. Equally a leading proptech company in Singapore, nosotros want to empower consumers and their growing desire for a sustainable future through tools like the PropertyGuru Green Score, which enables them to place eco-friendly homes hands by assigning a sustainability rating to backdrop listed on our portal. The collective shift towards greener practices volition simultaneously pave the style for more government initiatives and solutions effectually responsible urban planning that volition positively impact the environment and help protect our planet."
KEY FINDING #iii: MILLENNIALS ARE POISED TO RESHAPE THE HOUSING MARKET
Seventy-one per cent of Millennials in Singapore are prioritising saving for domicile buying this year over experiences like travel, nutrient, hobbies, and staycations, upwardly by two per cent from H1 2022 (69 per cent). Millennials also aspire to move up the belongings ladder, with 69 per cent of Millennial HDB homeowners intending to upgrade to private property after selling their HDB flat. Of which, 68 per cent are looking to purchase a non-landed private property.
One in three Millennials (32 per cent) as well seek to purchase a luxury belongings in the long run, with the majority citing this purchase as a undecayed long-term investment (66 per cent). Other reasons include its convenience (42 per cent), privacy (38 per cent), social status (30 per cent), and facilities (29 per cent).
"There is no dubiousness that Millennials in Singapore are one of today'southward fastest-growing segments of home buyers, with savings accumulated from pandemic sheltering. The filibuster in home-buying can also exist due to Millennials' increasing preference for a larger, luxury holding that commands college prices than typical starter homes. While investing in property for capital letter growth is appealing, Millennials should do prudence and take the fourth dimension to properly right-size their home ownership expectations based on their housing needs and financial state of affairs as in that location is still considerable uncertainty in the economy," said Dr Tan.
Cardinal FINDING #4: SPOILT FOR CHOICE, SINGAPOREANS OPT FOR MORE "CONSERVATIVE" HOME LOANS
More Singaporeans are opting for HDB loans (33 per cent) when looking for a new home, an 11 per cent increase from H2 2020. This preferential gap widens amongst Millennials, with two in five opting for HDB loans (41 per cent) over banking concern loans (59 per cent). Still, depository financial institution loans are withal the full general preference for the bulk of Singaporeans, amongst 59 per cent of Millennials, 76 per cent of Generation X, and 72 per cent of Babe Boomers.
The tiptop reasons for those who prefer HDB loans include feeling more secure in the event of a tardily repayment (31 per cent), considering themselves less financially savvy to refinance their loans (29 per cent), and assertive that they would get a better deal from taking an HDB loan compared to a banking concern loan (24 per cent).
This decision to finance their home with an HDB loan compared to a banking company loan could likewise be due to the overwhelming number of loan options to cull from. When looking for a new banking company loan, l per cent of Singaporeans spend well-nigh of their fourth dimension comparison depository financial institution loans. Xx per cent of these homeowners also spend fourth dimension searching for more information about bank loans to brand an informed choice.
Paul Wee, managing director of FinTech, PropertyGuru Group, said, "The abundance of loan options bachelor tin be daunting for most homeowners. It complicates the decision-making process, pushing them into a kind of decision paralysis where they stick to the most straightforward and safest option, like an HDB loan or a loan package with the lowest involvement rate. This may not necessarily exist the best option for everyone equally one can hands overlook other important factors to consider such every bit ane'south preferred loan tenure and current financial situation. In that location is no harm in seeking a second stance, peculiarly given the myriad of gratis online mortgage platforms or independent home loan experts and tools to assist homeowners simplify this process."
FINDINGS FROM PREVIOUS CONSUMER SENTIMENT STUDIES
- Singapore Consumer Sentiment Study H1 2021
- Singapore Consumer Sentiment Report H2 2020
- Singapore Consumer Sentiment Study H1 2020
This article was first published on PropertyGuru.
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Source: https://cnalifestyle.channelnewsasia.com/exceptional-homes/singaporean-home-buying-sentiment-h2-2021-285286
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