7 in 10 Singaporeans snub buying homes next year

Is it the best tactic today?

According to a survey by iProperty Group, 74% of respondents do not intend to buy a property within the next year. This is a huge increase from 2012, when only 38% expressed that opinion.

Property transaction volumes are declining, as the latest URA data show, with new private home purchases down 73% to 481 units in July, from 1,806 units in June. 61% say current HDB resale prices are not affordable to the average Singapore family, compared to just 23% who say they are. A large majority – 60% - have called for additional measures to be implemented.

Property.com Singapore General Manager, Mr Sean Tan, noted the positive and negative sentiments expressed in the survey. “Buyers are very concerned with price levels and affordability, and a large number of our respondents are delaying a purchase decision.

The question remains whether delay is the best approach. Some analysts are projecting a decline in the market, but there have been endless projections of a decline over the past few years; prices have continued to rise.

One issue we see is while cooling measures may be working, the high and sometimes record prices developers are paying for sites are not suggesting price declines anytime soon.