Singaporeans want more effort to rein in realty prices: survey

Singapore’s Property Affordability Index from Asia’s leading online property group is the quarterly benchmark for property affordability in the city-state. It takes into account survey measurements for overall satisfaction, future price perceptions and intention to purchase property as well as perceived government effort. 

For the first time since the first quarter of last year, the index has improved versus the previous quarter. What accounts for this is the fact that 10 per cent more Singaporeans expect local property prices not to increase in the next six months.

Findings show that Singaporeans are supportive of the government’s latest attempts at curbing the rapid growth of property prices in the market. These include the introduction of the market-cooling measures in January that impose a higher additional buyers’ stamp duty on second or more properties, harsher restrictions on property purchases by foreign buyers and the announcement of an increase in the supply of public housing. 

Despite this optimism, most respondents want more to be done to bring affordability back to baseline levels. While the January cooling measures have induced a slowdown in price growth for both private property and Housing and Development Board units, there is a lingering perception that prices can further be normalised through the government’s continued efforts at influencing the supply of and demand for property.

This is reflected in the general satisfaction with the real-estate climate dipping to 24 per cent from 31 per cent last quarter, with three out of four respondents highlighting overpriced property as the main reason for dissatisfaction. In fact, 60 per cent feel that the government should step up their efforts to address the problem – 13 percentage points more than last quarter.

Also, although there is an indication that Singaporeans feel that property prices will not increase, only one in five respondents intends to purchase property within the same period, choosing to hold off purchases in anticipation of further slowing down or a drop in prices.