National Development Minister confirms that HDB does not have records of the number of feedback and complaints received against EC developers Responding to a parliamentary question of whether the number of complaints made by Executive Condominium (EC) buyers to HDB against their respective EC developers within the first 12 months of getting their keys has risen [&hellip
65.3% of the 429 units at The Reef at King’s Dock sold Joint venture partners Mapletree Investments and Keppel Land announced that their project, The Reef at King’s Dock sold 280 out of 300 units released on Saturday (30 January). This means that 93% of the units releasedwere sold in a single day. The sales figure is equivalent to [&hellip
An economic rebound widely expected in 2021 will lift most property sectors to some extent, in particular, the office, industrial and residential sectors An economic rebound widely expected in 2021 will lift most property sectors to some extent, in particular, the office, industrial and residential property sectors Pent-up demand for hotels driving a V-shape recovery [&hellip
The upgrading works aim to strengthen the identity of the neighbourhoods with the building of entrance promenades and heritage markers, as well as upgrading of facilities. Each plan usually takes around five to 10 years to be implemented.
Mr. Christopher de Souza, the MP for Holland-Bukit Timah GRC, suggested using the vacant plots of land located next to Ulu Pandan CC and the old Ghim Moh Primary School, as well as redeveloping the site of the old Raffles Junior College campus.
The H1 2021 PropertyGuru Consumer Sentiment Study found mixed sentiment among Singaporeans towards the property market. While there is an overall optimism, more than half of Singaporeans are still uncertain of future property prices and concerns over housing affordability have been raised.
Overall, Singaporeans were more optimistic about the property market as the Sentiment Index – which measures current real estate satisfaction and overall climate, housing affordability, interest rates, perceived government efforts, and property prices – increased by two points in H1 2021.
Here are the key findings of the survey:
Key finding #1: Buyers feeling the pinch as property prices continue to rise
As property prices in Singapore continue to show an upward trend despite the pandemic, 84% of Singaporeans find property prices high, and fewer Singaporeans consider themselves able to afford a property with the current prices and income, down from 66% in H2 2020 to 60% in H1 2021.
Despite the various relief measures introduced by the government, including extended support to reduce home loan payments, more Singaporeans feel that the government needs to do more to make housing affordable, up from 62% in H2 2020 to 65% in H1 2021.
The rise in property prices over the last two quarters in 2020, fueled by pent-up demand post-circuit breaker, could have prompted Singaporeans to call for further ease in Buyer’s Stamp Duty (BSD) (64%) and lowered upfront downpayment costs (41%). Meanwhile, 61% also hope for a reduction in Additional Buyers' Stamp Duty (ABSD).
The majority of requests to lower BSD and upfront downpayment costs came from millenials, at 66% (vs. middle-aged and older Singaporeans at 62%) and 54% (vs. middle-aged and older Singaporeans at 45%), respectively.
Key finding #2: 3 in 5 Millennials are prioritising saving up for home buying amid the pandemic
While 72% of Millennials are thinking of moving out of their family homes in the next year, 28% are hesitant – citing the lack of savings to own or rent a home (48%) and not being married (35%) as top barriers for being unable to do so.
Despite this, most Millennials are establishing proactive financial steps to help fulfil their homeownership dreams. The study found that 69% of Millennials are prioritising saving for home buying this year over experiences like travel, food, hobbies, and staycations.
Dr. Tan Tee Khoon, Country Manager of PropertyGuru Singapore, said, “The economic and job uncertainty amid the pandemic has brought to the fore the importance of establishing long-term saving goals amongst Millennials, such as owning their first home. Millennials in Singapore are proving to become a dominant force in the property market as they look to fulfil their homeownership dreams in the next few years.”
Findings from the study further showed that the majority (97%) of Millennials would prefer to buy a home rather than rent, citing resale HDB flats as their preferred property type (30%), followed by new condos (29%) and private resale condos (23%). Surprisingly, co-living is an unpopular housing option to them, with only 18% interested in the concept.
“As the need for remote work continues, the idea of co-living may seem less appealing among Millennials as this could mean competing more frequently for the use of common spaces, or even resorting to working within the confines of the bedroom,” said Tee Khoon. “Owning an HDB flat, on the other hand, offers Millennials a place they can call their own, granting them more personal space and flexibility. They are also likely to be more prudent in their housing decisions, thinking long-term with plans like selling the flat after the Minimum Occupancy Period (MOP) to upgrade to private property.”
Tee Khoon added, “Still, co-living remains a great option for the budget-conscious Millennials who may not be ready to purchase a property but still want their own spaces or right-size their housing needs. Co-living tenants stand to enjoy enormous savings by sharing common living spaces with a like-minded community.”
Key finding #3: Landlords expect residential rentals to fall in 2021
In the study, more than half (52%) of investors and landlords anticipate rental prices to decrease in the next 12 months but expect stability or a slight increase in the long term, while 63% expect rent to stabilise or increase in the next two years.
93% of landlords consider retaining tenants in the current climate more important than renting at the right prices. In doing so, almost 3 in 4 landlords (72%) have given or are willing to give rebates or discounts to help their tenants. “The rental market is one segment adversely affected by the pandemic with a significant reduction in demand due to the uncertain economy and weak employment outlook,” said Tee Khoon. “But the current rental market situation is temporal, so interest will likely pick up as Singapore begins making travel bubble arrangements across regions.”
Key finding #4: More education needed around home loan financing to help bridge knowledge gaps
The study also identified the need for greater awareness and education around home loan financing, with 50% of Singaporeans indicating that their unfamiliarity with the required paperwork poses a challenge in them securing a home loan. Other concerns include their inability to afford their downpayment (39%) and job and income stability (36%). Meanwhile, nearly 2 in 5 Singaporeans (39%) are unaware that they can refinance their home loans. This number is higher amongst Millennials (47%) compared to middle-aged and older Singaporeans (33%).
When asked for the reasons for not refinancing their home loans, 45% of Singaporeans feel refinancing their mortgage during their lock-in period is an unwise decision, 34% perceive that a lot of effort is involved to refinance their mortgages, while 21% cited the need to pay thousands of dollars upfront when refinancing as a drawback. These findings all point to common mortgage refinancing misconceptions amongst home buyers.
Paul Wee, Managing Director (FinTech), PropertyGuru Group said, “While most Singaporeans are aware of refinancing, their level of understanding around the refinancing process and its benefits is still low, which affects opportunities to grow savings. A home loan is a long-term commitment. There is no one-size-fits-all approach, so it should be regularly reviewed, like a health check, to ensure that one’s needs are met as we move through each phase of life.”
Findings from previous Consumer Sentiment Studies: