Monday, August 20, 2012

Singapore Property Affordability Sentiment Survey Q2 2012

PropertyGuru conducts Singapore Property Affordability Sentiment Survey every quarter with the aim of determining the property sentiments of those looking to buy, sell, rent or invest in property. The last one for Q2 2012 has recently been released. According to the survey, Singaporeans are increasingly thinking that the property in Singapore is expensive and unaffordable but too small; prices are rising to unreasonable levels and COVs (Cash Over Valuation) are high. The key findings of the survey are:

  • More people think property is more unaffordable compared to 1Q 2012 and 3Q 2011
  • People are dissatisfied with the Real Estate Climate in 2Q 2012
  • People expect that the prices to go up in 3Q 2012

Overall 31% of consumers are dissatisfied with the current Singapore real estate climate in Q2 2012 - a big jump from 20 per cent in Q1 2012 with a rising pessimism on the affordability of Singapore property. On the other hand many still believe that the both HDB and private property prices will increase in the next 6 months. Also, 42 per cent of those polled (2300 people) think that the COVs will continue to rise. The survey also found out that there has been a 7 per cent rise in negative public sentiment towards the Singapore Government due to growing concern of escalating property prices.

URA Property Price Index of Residential Properties as of 2012
URA Property Price Index of Residential Properties as of 2012
Singapore is struggling with a giant property bubble fed by massive triple money printing machine : FED, ECB and Chinese Central Bank. The artificially low borrowing costs and persistently high inflation combined with ridiculous interest rates on deposits forced many to invest their money into property and as a result Singapore private property index has reached an all time high. Although this 2012 obviously looks like a peak (see the chart above) many are still buying private property with the expectation that Singapore private property prices will always head north no matter what happens. This sentiment has been fed by ineffectiveness of rounds of property cooling measures introduced.

Source : Singapore Property Affordability Sentiment Survey

No comments:

Post a Comment