Singaporean consumers unsure of how the pandemic will affect property prices

PropertyGuru also uncovered that two in five buyers have become more price-sensitive

A view of apartment buildings in Singapore. joyfull/Shutterstock

Earlier this month, Asia’s leading proptech company PropertyGuru Group published the H2 2020 Consumer Sentiment Study where they uncovered that 55 percent of Singaporeans felt unsure about the future of property prices because of the pandemic, which in turn, affected their property-related decisions.

As such, secondary market sellers have decided to postpone selling properties hoping that they would get better offers as buyers scan the market for lower rates. 

The report also discovered that 42 percent or two in five buyers have become more price-sensitive, while 82 percent were more than willing to compromise their need for household facilities in exchange for a more economical home.

“It is no surprise that buyers are taking a more cautious approach towards property decisions given the heightened levels of market volatility brought by the COVID-19 pandemic,” said Tee Khoon, country manager of PropertyGuru Singapore. 

“That said, the eventual decline of COVID-19 cases in the community and subsequent resumption of the economy should see the release of pent-up demand for property buyers and sellers,” he added. 

More: Private residential market in Singapore to strongly recover from economic downturn

 The mixed feelings of property buyers towards the market most likely caused the four-point drop in the overall Sentiment Index from 45 in the first quarter of 2020 to 41 in the second quarter. 

“The Sentiment Index measures a series of concerns raised around housing affordability, proper property prices, the overall real estate climate, interest rates, property prices and the perceived government efforts in the property market amid the current pandemic,” PropertyGuru explained in the report. 

“Those dissatisfied with the current real estate landscape cite property prices not softening to levels they expect in the current situation as a major reason,” the proptech company further explained.

To read more about their key findings, visit propertyguru.com.sg/customer-service/press-releases/propertyguru-survey-reveals-that-55-of-singaporean

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