Homebuyers broaden searches across more districts

First-time buyers consider an average of 2.5 areas.

Homebuyers in Singapore are broadening their search for their new or next asset purchase by exploring more districts.

According to PropertyGuru Singapore's Consumer Sentiment Study H2 2024, first-time buyers consider an average of 2.5 areas when searching for homes.

Location (47%) is among the top factors Singaporeans consider when buying or renting properties. Other factors include the property’s walking distance to an MRT station (56%) and nearby amenities (41%).

There has also been a growing consideration for unit size, with seven in 10 saying they consider this when buying or renting.

About a similar percentage (70%) of buyers also consider the unit’s price per square meter, while some focus on the property type.

Amongst property types, HDB flats continue to be the popular choice among Singaporeans, with 35% planning to buy a BTO flat and 25% opting for a resale flat.

Some buyers plan to purchase newly launched non-landed private property (15%), resale non-landed private property (10%), and newly launched executive condominiums (8%).

A majority of those planning to purchase newly launched private property are aged 22-29, with most interested in new facilities (60%), its potential for capital appreciation (56%), and having a greater choice of units (43%).

Whether they’re looking at private or public housing, the main challenges for homebuyers remain the same: high property prices (87%), rising interest rates (56%), and increasing renovation costs (39%).

High property prices are also felt within the rental market, with four in five saying current rental prices are too high.

More than half (52%) believe asking prices are stabilizing or declining.

Additionally, one-third (33%) of landlords plan to reduce or maintain their rental prices.

In line with pricing challenges, PropertyGuru also found that new homebuyers lack knowledge of property financing, with only a few knowledgeable about additional costs (39%), home loan eligibility (35%), and housing scheme eligibility (32%).

The study also found that whilst majority are familiar with refinancing, nearly one-third (32%) plan to refinance within the next five years, yet 39% remain unclear on how to refinance their mortgage.