Top worries for homebuyers according to the ERA poll are affordability and finance
Top worries for homebuyers according to the ERA poll are affordability and finance
New house sales have slowed in the first half of 2024 due to cautious attitude.
Tuesday, August 15, 2024
A recent poll by ERA found that among Singaporean homebuyers, affordability is the most important factor.
The real estate agent found that 24% of respondents were worried about rising property prices and 16% stated they had trouble getting a bigger loan.
A small percentage of respondents (16%) were likewise worried about the impact of borrowing rates on affordability. Also, 17% of people think it's hard to buy investment property because of rising interest rates and property taxes.
According to ERA, new house sales slowed in the first half of 2024 due to economic difficulties and high mortgage rates, reflecting the cautious mindset among purchasers. Assuming financing conditions loosen, homebuying might be stimulated by the Federal Reserve's anticipated rate decreases.
In a survey that took place from June to July 2024, ERA partnered with Ngee Ann Polytechnic's School of Design and Environment to poll 1,737 people from four different generations: Gen Z (those aged 21–27), millennials (those aged 28–43), Gen X (those aged 44–59), and seniors (those aged 60 and up).
Homebuying preferences, housing requirements, housing budgets, and property goals were among the questions asked of respondents.
The Housing and Development Board's (HDB) Build-To-Order apartments are still an affordable alternative, according to 61% of purchasers polled.
In answer to our questions, ERA said that 29% of those who took the poll were ambivalent about the cost of BTO apartments. Ten percent were dissenting.
The percentage of people who thought HDB resale apartments were inexpensive was 32%. Resale apartments were deemed inexpensive by 32% of respondents, while 36% were agnostic on the matter.
On the other hand, when asked about the affordability of new and resale private residences, 45% of respondents were in agreement or had no opinion. Private residences were not affordable, according to the remaining 55%.
Even though it's out of reach financially for many, 34% of respondents still want a private condo, and 7% are considering landed property.
Only 12% have their sights set on purchasing an elite condo, while 48% are open to the idea of purchasing a BTO or a resale apartment.
According to ERA, two-bedroom condominiums in the Outside Central Region are now priced between S$1 million and S$2 million, and 58% of those wanting to purchase a condo have a budget in this range. Twenty percent more people stated they can afford a private house between two and three million Singapore dollars.
According to the report, 59% of Gen Zers are planning to purchase a BTO apartment as their first home, while 23% are considering a resale flat. In the next three to five years, over three-quarters of the Gen Zs surveyed want to upgrade to a new private condo.
Among the millennials polled, almost a third are interested in purchasing a condominium.
Among all generations, 37% of Gen Xers expressed a preference for buying a home outright.
According to ERA, 54% of seniors want to buy a new home in the near future; however, this interest might be motivated by a desire to downsize.
The housing choices of Singaporeans will be influenced by their opinions, tastes, and the pressures they experience, according to ERA chief executive officer Marcus Chu.
