SINGAPORE, 23 May 2013 – PropertyGuru, Asia’s leading online property group, is pleased to announce the results of its latest property sentiment survey, Singapore’s Property Affordability Index, to reveal a growing call for the government to correct the overpriced property market despite the perception that prices will not increase further.
The Property Affordability Index, is the quarterly benchmark for property affordability in Singapore. It takes into account survey measurements for overall satisfaction, future price perceptions and intention to purchase property as well as perceived government effort.
For the first time since Q1 2012, the Property Affordability Index has improved versus previous quarter. What accounts for this is the fact that 10% more Singaporeans expect the local property prices not to increase in the next six months.
Findings show that Singaporeans are supportive of the government’s latest attempts at curbing the rapid property price growth in the market. These include the introduction of the property cooling measures in Jan 2013 which imposes a higher Additional Buyers’ Stamp Duty (ABSD) on second or more properties, harsher restrictions for property purchase from foreign buyers and the announcement of an increase in supply of public housing.
Despite this optimism, the majority of respondents want more to be done to bring affordability back to baseline levels. While the Jan 2013 cooling measures have induced a drop in rate of price growth for both private property and HDBs, there still is a lingering perception that property prices can further be normalized through the government’s continued efforts at influencing the demand and supply of property in the market.
This is reflected in the general satisfaction with the real estate climate dipping to 24% from 31% last quarter, with 3 out of 4 respondents highlighting overpriced property prices as the main reason for dissatisfaction. In fact, 60% feel that the government should step up their efforts to address the problem, 13% more in comparison to last quarter.
Also, although there is an indication that Singaporeans feel that property prices will not increase, only 1 in 5 respondents intend to purchase property within the same period, choosing to hold off purchases in anticipation for further slowing down or a drop in property prices.
“Singaporeans are starting to see that the cooling measures, especially after the 7th round in Jan 2013, slowly coming into effect to slow down the rate of price growth for properties across the board,” said Raymond Tan, Managing Director of Added Value Singapore. “However, the majority are still clamouring for the government to intervene and further manage prices so as to keep affordability within their reach.”
Steve Melhuish, CEO of PropertyGuru Group said, “Insights garnered by the regional PropertyGuru Property Sentiment Survey reflect market realities as viewed by the property seeker in each of our key target markets.”
“With South-East Asia becoming a region obsessed with property buying, selling and investing, real estate has become more than physical places for residency. Capturing, and analysing how the property seeker feels, has proven to be an invaluable introspective tool to keep up to date on what the hot topics in the industry are.”
ENDS
The Property Affordability Index
PropertyGuru has developed and started tracking the Property Affordability Index in 2010. In collaboration with Added Value-Saffron Hill, a Singapore based independent professional research agency, the quarterly survey aims to provide insights into the local property market through the consumers’ perspective and shed light into how property trends affect their property decisions over time. These perspectives are based on a representative sample (Singapore: 662 respondents in Q2 2013). In addition to Singapore, PropertyGuru conducts the survey in Malaysia, Indonesia and Thailand, attracting 4,062 online respondents aged 21-69 who are influencers or decision makers on property.
PropertyGuru Group
PropertyGuru Group is Asia’s leading online property portal group used by almost 11 million property buyers, viewing over 85 million property pages and generating over 350,000 enquiries for real estate developer and agent advertisers – every month.
Headquartered in Singapore, PropertyGuru was founded in 2006 by 2 entrepreneurs with a vision to simplify the property search process and help buyers, sellers and investors make better property decisions faster. Taking advantage of Asia’s growing affluence, property demand and online explosion, it received its first VC investment funding in 2008 and most recently secured approximately $60m investment in 2012 from Deutsche Telekom, South East Asia’s largest digital investment to date. Since its launch, PropertyGuru has reported rapid growth and most recently announced a record 96% increase in revenue, 60% increase in internet users and 50% increase in paying agent advertisers to 24,000 – in 2012.
The award winning company focuses heavily on innovation. Over the last 18 months, the Company has developed and launched 13 mobile applications in 4 countries and 3 languages which have received over half a million downloads – almost 50 per cent of its users in Singapore now originate from a mobile device. PropertyGuru was also the first to integrate website with social media, first to launch Singapore’s only dedicated property newspaper with over 100,000 copies circulated island-wide every month and developing a property events platform with approximately 30 shows held annually across 4 countries addressing 30,000 potential property buyers on the ground.
About Added Value
Added Value (www.added-value.com) provides consultancy on brand development and marketing insight for iconic brands, both big and small, around the world. We help solve clients’ central marketing questions about market, brand, innovation and communications with a footprint that now extends across 22 locations in 13 countries. Added Value is part of Kantar, WPP’s consumer insight and consultancy division. More information is available at: www.added-value.com or blog www.added-value.com/source
For more queries or to arrange for an interview, contact:
Katrina Karim
Mobile (+65) 9844 6618
Email katrina@thepublicrelationscompany.com
Adam Rahman
Direct (+65) 6238 5971
Email adam@propertyguru.com.sg