Tag Archives: Singapore housing market

Many Singaporeans still dissatisfied with housing market

Many Singaporeans are still unhappy with the state of the local property market, according to PropertyGuru’s latest Property Affordability Sentiment Survey 2016.

About 44 percent of the survey’s 933 respondents reported being dissatisfied with the market. The main cause of unhappiness remains the sky-high property prices.

However, the majority of those polled believe home prices will stabilise or fall further in the next six months.

Meanwhile, 28 percent of respondents said they are satisfied with the local market, up from 26 percent during the same period in 2014.

Close to half of the respondents (48 percent) said they intend to purchase residential property in the next six months, up five percent from 2014. Their optimism is largely due to the good long-term prospects for capital appreciation.

At the same time, 42 percent of respondents feel the government is doing enough to make housing affordable, up nine percent from two years ago. About 68 percent support the government’s property cooling measures.

“(The) results show that although pricing concerns remain, the overall mood is more positive, with almost half of respondents saying they intend to buy this year,” said Steve Melhuish, CEO and co-founder of PropertyGuru Group.

“We know that finding your ideal property can be daunting, and without transparency or relevant information, the property-buying process can be frustrating and confusing. Through our regular surveys, research insights, tools and media-rich content, we aim to help millions of consumers make more informed and confident decisions every month,” he added.

Carried out in December 2015, the survey offers insights into the current mood and attitudes of property seekers here, and has been conducted regularly since 2009.

Read the full report here.

Analysts forecast property rebound in mid-2016

Amidst the mostly bearish views on Singapore’s housing market, some experts believe that transaction levels could start to recover in the second half of 2016, reported The Business Times.

Next year could be a tale of two halves for the property sector. A tepid first-half followed by a rebound in transaction levels over the next six months, especially in the luxury housing market, said Knight Frank’s Head of Research & Consultancy, Alice Tan.

She thinks that interest from both local and foreign buyers may rise due to the likelihood of some economic stimulus from the government, coupled with the unfavourable situation in some mature overseas property markets like Australia and London.

A number of buyers could also return to the market, particularly in 2H 2016, when they feel that the hefty price corrections they were anticipating are unlikely to happen, noted Alan Cheong, Research Head at Savills.

As for transaction levels, he forecasts that primary sales of private non-landed homes, excluding executive condominiums, could hover around 7,500 units next year.

Such optimistic views are also shared by OrangeTee’s Senior Manager for Research and Consultancy, Wong Xian Yang, who believes home prices in the Core Central Region (CCR) and Rest of Central Region (RCR) could start to stabilise in late 2016 or 2017, as long as the economy remains positive.

“Demand may start gravitating towards the central regions (CCR and RCR) as prices become more attractive and affordable,” he said.

However, property experts believe that the looming supply glut could worsen vacancy rates.

“With the impending new completion of around 22,300 private home units next year, (the) vacancy rate may creep up to 10 percent or higher especially for non-landed homes,” noted Tan.

Cheong thinks “it may take about 18 months till mid-2017 for the rental market and vacancy levels to improve.” In particular, the vacancy level for non-landed homes could surpass 10 percent next year.

Meanwhile, SLP International’s Executive Director Nicholas Mak reckons that non-landed home prices could dip by 2.5 to five percent in 2016. In the worst-case scenario, prices may fall by more than five percent next year.