They’re not scared of rising rates.
Home-buying sentiment in Singapore surged in the first half of 2016, on back of greater confidence that cooling measures will be removed and less concern about housing affordability.
The latest iProperty Asia Property Market Sentiment Report showed that 59% of respondents are interested in purchasing another property despite existing restrictions, a steep surge compared to just 14% in the second half of 2015.
A staggering 95% of respondents are also confident that Singapore residential properties make good long-term investments, up from just 18% in the second half of 2015.
Meanwhile, 96% expect cooling measures to be relaxed within the next 18 months, up from 75% in the previous survey.
“Today’s property buyers think they can wait for additional price declines, but it is very difficult to time the market. Clearly pent-up demand is there; our respondents are not bothered by anticipated rate rises, indicating their funding and finance options are strong,” said Sean Tan, Singapore General Manager and Chief Business Development Officer at iProperty Group.
Almost all respondents believe that interest rates will rise but 81% stated that rising rates will not affect their decision to purchase property. Close to 75% of respondents have less than ten years left on their mortgage payments, suggesting capacity for property investments.
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