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SG Govt not doing enough to curb soaring house prices: survey

Property Here - Tuesday, May 21, 2013

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By Romesh Navaratnarajah:

The government’s recent cooling measures to moderate property prices are still not enough, according to 60 percent of the 662 online respondents inPropertyGuru’s latest Property Sentiment Survey for the second quarter of 2012.

This is 13 percent higher than the 47 percent recorded previously in Q1.

There was some good news though. The Property Affordability Sentiment Index (ASI) was up at 87 from 80 in the previous quarter, reflecting a ‘cooling off’ from the sky-high prices seen since Q2 2012. 

This was supported by the larger number of Singaporeans who believe that property prices are unlikely to rise. Compared with last quarter, 10 percent more respondents do not expect prices to move up further.  

But only 19 percent plan to make property purchases in the next six months even though prices are not expected to grow. 

At the same time, the majority still feel that property prices are costly. For HDB flats, 37 percent reckon that prices are too expensive with 36 percent saying they are expensive. A significant number (84 percent) feel that private apartments and condominiums are pricey.

Overall, Singaporeans were less satisfied with the real estate climate in Q2 with only 24 percent satisfied with the property climate, the second lowest level recorded since Q3 2011. 75 percent of those dissatisfied said properties are overpriced, while 64 percent pointed to prices being expensive. 

Meanwhile, those who are satisfied highlighted the country’s healthy economy (40 percent), good capital appreciation in property investment (39 percent) and low mortgage / interest rates (38 percent). 

Generally, satisfaction in the real estate climate is declining again, clearly seen in the higher proportion of Singaporeans still very dissatisfied. 



Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@allproperty.com.sg