Property Affordability Rating dips as prices rise: study

Most Millennials prefer buying property than renting.

The number of Singaporeans who can afford to buy property decreased in H1 2021 as property prices continue to rise, according to a study by PropertyGuru.

The study said the Property Affordability Rating dropped by 5 points from 69 in H2 2020 to 64 in H1 2021. Amongst those surveyed, 84% find property prices high whilst four out of 10 Singaporeans don’t feel confident to purchase a property in the current climate.

Around 65% of Singaporeans feel that the government needs to do more to make housing affordable, an increase of 62% in H2 2020.

Meanwhile, most Millennials prefer buying property over renting, with 97% indicating interest in buying.

The 69% are prioritising saving for home buying this year over lifestyle spending such as travel, food, and hobbies.

“The economic and job uncertainty amid the pandemic has brought to the fore the importance of establishing long-term saving goals amongst Millennials, such as owning their first home. Millennials in Singapore are proving to become a dominant force in the property market as they look to fulfil their homeownership dreams in the next few years,” said country manager of PropertyGuru Singapore Dr. Tan Tee Khoon.