Improving Singapore residential market according to PropertyGuru survey

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singapore property residential reit dividend

According to PropertyGuru’s Consumer Sentiment survey conducted recently, buyer sentiment is at the highest level since 2013.




Together with other indicators such as the uptick in the URA price index, this suggests that the Singapore property market may be turning the corner.

Survey satisfaction

In the PropertyGuru survey, 37% of respondents indicated they are satisfied with the real estate climate in Singapore.

This is 3 percentage points higher than 34% recorded in 1H 2017’s survey.

The main drive for the higher level of satisfaction is, no surprise, anticipation of long-term capital appreciation and low mortgage rates.

Also read: What’s with Viva industrial REIT’s income support

(But be careful that low mortgage rates don’t stay low forever).

Additionally, 28% of respondents said that they felt Singapore has a stable and resilient real estate market.

Prices high, but expected to rise further

Some respondents were unhappy because they felt that property prices were high.

However, in the same vein, most respondents expected prices to continue climbing.

Specifically 72% of respondents indicated that they expect condominium price to increase. Among that, 26% expected prices to increase by more than 10%.

HDB market remains healthy

The survey shows that price perception of HDB flats have improved. 52% of respondents in this survey are satisfied with HDB prices, up from 47% in the previous survey.




However, 39% of respondents felt that HDB prices will increase in the next 6 months and this is lower than 54% in the previous survey.

Between private and HDB properties, respondents are more positive on private properties.

Also read: Singapore property market information at your fingertips

Most respondents expect HDB prices to increase less than 5%. This is lower than the range of 5-10% that most respondents this private property prices will increase by.

Rents not out of the woods

The rental market has been weak for the last few years, and the feedback from respondents show that the lackluster mood still prevails.

One reason cited for the poorer sentiment is the presence of disruptors in the market such as AirBnB which is contributing to uncertainty in the rental market.

51% of respondents feel that rents will increase in the next 5 years compared with 21% expecting them to fall.

Intention to buy

About half of the respondents intend to buy a residential property in the next 6 months.

Those who are intending to purchase private residential properties show the highest intention to buy.

According to PropertyGuru, this is due to returning optimism in the market and replacement demand from those whose previous homes were en-bloc’d.

By district, 15 (East Coast and Marine Parade) and 11 (Newton and Novena) are the most popular locations for purchase, with 44% of respondents planning to buy.

71% of these respondents who have an intention to buy have a budget of at least S$750,000.

Government playing a positive role

Despite the anticipated price increase, 35 percent of respondents think that the Singapore government is doing enough to make housing affordable, up from 32 percent in the previous survey.

On top of that, 50 percent of them agree with the government’s stance on maintaining the existing cooling measures.

Setting sights on overseas properties

21% of respondents indicated they own overseas properties.

Malaysia, India, UK and Australia were the most popular investment decisions given the country’s affordable domestic prices and potential for capital appreciation.




However, the intention to buy overseas has declined to the lowest since 3rd quarter of 2011. This is due likely to investors setting their sights on the local Singapore market which is beginning to see signs of a pick up.

Among those still keen to buy an overseas property for investment, Australia, Malaysia and Thailand are the three top destinations.

Source: PropertyGuru Consumer Sentiment Survey

Now you know what most respondents are thinking. If you’re interested to start investing, check out a whole bunch of upcoming condominium developments here or the following individual pages



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