What pushed Singaporeans to delay home-buying plans?
PropertyGuru found that two in four Singaporeans are likely to delay plans to purchase a house.
Half of Singaporeans are planning to delay their home-buying plans due to inflation fears, a study by PropertyGuru revealed.
A quarter (24%) said they will likely drop all plans to buy entirely.
The same study suggests that houses have become less affordable in the first half of 2023.
Based on the study, the affordability rating of Singapore homes dropped to 43 points in 1H23 from 58 points in 2H22.
In the past months, more Singaporeans (57% in 2H22 vs 42% in 1H22) are also rating property prices as expensive or too expensive.
Whilst many are considering delaying home-buying plans, quite a number (21%) still plan to push through with their purchase.
Of those looking to buy a property, 31% are considering an HDB BTO flat. This sentiment is highest among younger Singaporeans aged 22 to 29 (47%) and lower-income individuals (50%).
Most of them (67%) are drawn to HDB BTO flats due to their affordability.
“Given the increase in marginal Buyer’s Stamp Duty (BSD) announced in Budget 2023, we expect property seekers searching for private residential homes between the $1.5 million to $2 million price range to pause and recalibrate their purchase preferences. They may even further ‘right size’ their accommodation choices or consider HDB resale flats, especially if they are first-time applicants due to the enhanced Central Provident Fund (CPF) Housing Grants are available. They would now have more financial muscle towards purchasing the larger flat types such as four- or five-room flats.” Tan Tee Khoon, Country Manager – Singapore, PropertyGuru, said.