SINGAPORE: PropertyGuru published its first Singapore Consumer Sentiment Study for 2024 on Monday (March 11). The study showed that more than four out of five (85 per cent) renters found rental prices too high in the last two months of 2023.
These high prices have caused them to cut down on spending elsewhere. Almost as many (84 per cent) feel that more can be done to lower high rental prices.
Nevertheless, two in five (40 per cent) Singaporeans who participated in PropertyGuru’s study expressed optimism over the HDB housing policy tweaks announced at the National Day Rally last year, believing they will make HDB flats more affordable and accessible.
Singaporeans in the high-income group and those between the ages of 22 and 39 expressed the highest optimism.
The study measures current consumer sentiments and expectations of the Singapore property market.
However, the sentiment is not as positive in the rental market. Over two-thirds of those surveyed (69 per cent) said that they expect rental prices to increase even further, with almost half (47 per cent) saying they are expecting rental increases of 5 per cent or more.
Study participants within the low-income group were more likely to express this sentiment. The number of renters who have cut down on their spending to afford higher rental rates went up from 34 per cent in the second half of 2023 to 37 per cent in the first half of 2024.
Additionally, more people are now lowering their rental budgets, with over half (52 per cent) of low-income home seekers saying they are allocating between S$500 and S$1,000 for monthly rent.
More Singaporeans are also looking for less costly rental properties, an increase from 38 per cent in the last half of 2023 to 44 per cent.
However, one of the key findings of PropertyGuru’s study is that there continues to be a demand for residential properties in Singapore despite “looming economy headwinds and the uncertainty of the trajectory of interest rates.”
Nearly seven out of 10 Singaporeans (69 per cent) say they plan to buy a property, and over half say they intend to do so in the next five years.
“Real estate has always been sought after as a hedge against inflation. In the long term, real estate tends to appreciate in value, outpacing inflation and resulting in capital gains.
The quantum of capital gains attained would likely outstrip other forms of investment. Even during economic downturns, real estate may retain value and continue to appreciate as the economy recovers,” says Dr Tan Tee Khoon, Country Manager for PropertyGuru Singapore. /TISG
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