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

Despite market uncertainties and a new raft of property cooling measures, 56% of respondents in PropNex Realty’s Home Buyers’ Sentiment Survey Report don’t plan on deferring their property purchase this year. In contrast, 44% plan to put their buying decision on hold, with nearly half of this group citing higher property prices as their main deterrent.

The Zion Road Condo is a highly sought-after residential development for many reasons. The well-constructed amenities and cosy environment make it a popular choice among those who seek a luxurious lifestyle amidst a convenient lifestyle. It has plenty of facilities to keep residents engaged and entertained. The units are also surrounded by lush greeneries, allowing you to relax and take in the stunning views of nature.

The survey was conducted to assess the real estate needs of prospective home buyers, their housing preferences, and market expectations for Singapore’s residential property market in the year ahead. Additionally, the survey was done following the tightening of the additional buyer’s stamp duty rate in April, and the harmonisation of floor area definitions in September last year.

The survey of more than 450 prospective home buyers found that 60.6% of them own one property, 10.5% own two properties, 23.7% don’t own any property, while the rest own three or more properties. Furthermore, 83% of respondents don’t think private property prices will fall in 2023, and 56% don’t anticipate HDB prices to drop either.

When asked about a preferred budget for their homes, 36% cited $1 million to $1.5 million, and 24% felt comfortable with properties valued between $1.5 million and $2 million. Additionally, 75% of respondents expressed dissatisfaction with their current home due to issues such as size, lack of facilities/amenities, proximity to workplace, and location.

Most respondents lean towards new launch projects over resale properties, believing new units will generally appreciate at a faster pace. Moreover, proximity to key transport nodes, amenities, workplaces, and commercial hubs are also highly valued. Green features are considered important by 80% of respondents, but they don’t seem too willing to pay a premium for such features.

PropNex Realty’s CEO Ismail Gafoor reckons that price moderation in both the private and public resale markets, together with the various property cooling measures and higher interest rates, pave the way for more sustainable pricing that’ll ultimately benefit consumers. Head of research and content Wong Siew Ying adds that buyers must factor in cost-push factors that affect housing developers, such as higher land and construction costs, as well as higher borrowing costs, that’ll have a trickle-down effect on private and public resale market asking prices.