iProperty Group Asia Sentiment Survey(H2)-Updates

7/31/2019 iProperty Group Asia Sentiment Survey(H2)-Updates

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Going into the second hal o 2012, the iProperty Group, owner o Asias No.1 network o property

portals, embarked on the second iProperty.com Asia Property Market Sentiment Survey H2 2012to gauge how the general public perceived the market compared to six months ago. Despite the economic situations such as the Euro-debt crisis and problems in the UnitedStates o America (US) which has resulted in slowing demand rom Asia key trading partners,sentiments in the Asian real estate markets is still airly positive. The introduction o cooling measures by governments across Asia including theimplementation o stricter lending restrictions, increased stamp duties and higherdownpayments, has helped curb speculation and stabilise property prices has proven e ective.

The survey gathered a total o 25,754 respondents and was conducted rom 1st July 2012 to31st July 2012 across the iProperty Groups network in Malaysia, Indonesia, Hong Kong andSingapore. Its main objective was to provide us with a plat orm to understand how the generalpublic, property investors, buyers, sellers and owners, including locals and expatriates, perceivethe property market in the next ew months o the year. The survey results however revealed that the majority o the respondents are airly cautiousabout the property market in Asia, which represented a micro view o the generaldeclining sentiments.

We trust that this report will o er valuable insights to not just our consumers, but also todevelopers, real estate agents, and local and international property buyers, as with this surveyreport they will be able to gauge the sentiments o the market rom an unbiased perspective. We wish to thank all o the survey respondents or their valuable input on the property market.Should you have any comments and eedback pertaining to this report, please drop us an emailat my.in [email protected].

Sincerely,

Shaun Di GregorioChie Executive OfcerThe iProperty Group


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In the second iProperty.com Asia Property Market Sentiment Report 2012, surveyrespondents in Malaysia (iproperty.com.my), Indonesia (rumah123.com andrumahdanproperti.com), Hong Kong (GoHome.com.hk) and Singapore (iProperty.com.sg)revealed their intentions, pre erences and motivations in acquiring property.

Indonesian survey respondents were the most likely to have intentions to buy propertyin the next 6 to 10 months (82%), compared to their counterparts in Singapore (62%),Hong Kong (35%) and Malaysia (31%).

38% o Singaporean respondents who participated in the survey showed interest inoverseas property, a signi cantly larger percentage than any other country surveyed.

Most survey respondents in each country had only been in their current premises or5 years or less. Those surveyed in Hong Kong were most likely (67%) to have residedin their home or less than 5 years.

Most o those surveyed were between the ages o 26 to 40.

Here are some other key ndings:

- The earning power o women in Malaysia, Indonesia and Singapore has rapidlyincreased in comparison to the previous survey.

- Most o the survey respondents in Malaysia, Indonesia, Singapore and HongKong have occupied their current premises or less than 5 years.

- Location was a top priority that survey respondents in Malaysia, Indonesiaand Singapore did not compromise on. Respondents in Hong Kong howeverconsidered price to be the most important actor in purchasing property.

- A ordability and rising house prices continue to remain the biggest concerns osurvey respondents in Malaysia, Indonesia, Singapore and Hong Kong.


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The iProperty Group conducted its second iProperty.com Asia Property MarketSentiment Report or the second hal o 2012 with the objective o providing thegeneral public, property investors, buyers, sellers and owners, including locals andexpatriates with insights into the property market rom a consumer perspective.

In Malaysia, a total o 11,966 people responded to the online survey. The surveyresponses were taken rom three collectors: a Facebook Post (23%), a Pop-Up invite(34%) and a web link (43%).

In Singapore, a total o 2,983 people responded to the online survey.

In Indonesia, a total o 9,805 people responded to the online survey.

In Hong Kong, the survey gathered a total o 1,000 respondents. The survey wasdesigned and conducted in both English and Chinese on www.GoHome.com.hk

property website.

An analysis o data rom each survey question only considered data rom questionsthat were not skipped.

Survey respondents were provided links to questions that were non general related tohelp them understand more about the issue/topic be ore answering the questions.


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Asia Overview

Across the our countries, Malaysia, Indonesia, Hong Kong and Singapore, surveyed, themarket sentiment showed that the property market in Asia continues to be cautious.The survey ndings showed that people are more selective in their investments andinvestors are evaluating based on quality and undamentals o each location.

Those answering the survey tended to be the rising income group, with most in the26 to 40 years old age group. There were also made up largely o executive/managerial and pro essional occupations, mostly with annual household incomesabove the national average. The majority o people answering the survey in each country had occupied theircurrent premises or less than ve years; in other words, they were not the type tosettle or what they already had.

Economic and political concerns were not high on the list o concerns or most surveyrespondents, which re ects the general economic health o the Asian region.

In deciding on whether or not to buy property, location and price were the highest- rated factors for all respondents. Location was the most important factor for

Malaysians, Indonesians and Singaporeans. While survey respondents in Hong Kong

placed more emphasis of their purchasing decision on price.

43% o Malaysians surveyed owned two or more properties, the highest amongall the countries surveyed, while Indonesia had the lowest percentage at 12%.


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Indonesian survey respondents biggest motivation to purchase property wasto own their own property at 72%, the highest among all the countries surveyed,

ollowed closely by Hong Kong at 71%.

Singaporean survey respondents topped the list or purchasing property orrental income at 37%, a result that was similar to the previous survey result.

Malaysian survey respondents, on the other hand, were more keen to purchaseproperty or investment compared to the other countries.


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38% Singaporean survey respondents were interested to buy overseasproperty, the highest compared to all the countries surveyed, which is similar tothe previous survey result ndings.

Malaysians, Singaporeans and Indonesians considered location to be themost important actor o consideration when purchasing property. However,in Hong Kong, price was the deciding actor over location, a result that wasthe same in the rst hal o the year.


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Most survey respondents had occupied their current premises for the less

than 5 years re ecting the mobility o survey respondents and their desire tocontinuously upgrade their living environment.


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The real estate sector has been a major source o strength or the global economy

since the most recent economic downturn. A report released by Malaysia PropertiesIncorporated (MPI) stated that the Malaysian real estate is in tandem with thecontinued growth in the economy.

Major cities in Malaysia such as Kuala Lumpur, Penang and Johor Bahru, and withrising expectations in Kota Kinabalu, have seen capital appreciation in their realestate purchases.

There is every indication that the countrys biggest asset, the growing young workingpopulation, will continue to drive the domestic residential market.

Despite expectations o a slowdown during the second hal o the year, the propertymarket has seen a substantial increase in the volume and value o transactions in theresidential property sector.

There are several actors that have contributed towards the growth o the

Malaysian property market, namely:

A growing economy estimated GDP growth between 4% to 5% for 2012

Ranked 11 th on the Global Peace Index 2011

Ranked 16 th on the Global Survey Financial System 2011 by World

Economic Forum

Ranked 21 st on World Bank Global Doing Business 2011

Ranked 1 st Best Place to Retire by the Japanese

Ranked 4 th Best Place to Retire by International Living Inc

Ranked 18 th Best Place to Migrate by the United States

World Investment Report revealed that Malaysia has the 3rd best in FDI

in Asean

5 th Best in Asia and the top 10th in AT Kearney 2012 FDI Confdence Index


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Demographics: Young Work orce Ready to Buy

59% o Malaysians participating in the survey were male. In comparison to the previoussurvey conducted in December 2011, there was a signi cant increase in the number o

emale correspondents rom 39% to 42%.

This could indicate that, in general, the earning power o women is rapidly improving,which could mean they were now more nancially independent or has built nancialstability, and has the intention to create a secondary stream o income throughproperty investment.

Similar to the previous ndings, the largest segment o the group was rom the31-35 years age group at 24%, ollowed by those between the ages o 26-30 yearsat 22%.


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In the survey, executives/managers (38%) and pro essionals (22%) made up thelargest groups, ollowed by the sel -employed (11%).

56% o the people answering the survey reported an annual household incomeo MYR80,000 or less. The largest segment at 25% are those who had an annualhousehold income o MYR80,001 to MYR160,000. From the ndings, we can see thatthe average respondents in this survey were relatively well-to-do.


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With the low barriers to property ownership and a healthy property price growthin Malaysia, it was not surprising to the see that more than a third (34%) o thosesurveyed considered themselves as Property Buyers. Just over a quarter (26%) othose surveyed considered themselves Property Owners, while about a th (20%)considered themselves as Investors.


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Almost a third (33%) o Malaysians answering the survey owned one property; whilealmost one in our (25%) Malaysians do not own a property. A signi cant percentage(43%) o those surveyed reported that they owned two or more properties.

Again, this is an indication that the low mortgage interest rates, nancing o up to100%, no lock in period, stamp duty exemptions and long repayment periods hasmade property ownership in Malaysia relatively easy.


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A whopping 57% o Malaysians surveyed occupied landed property, most probablybecause the latter continues to o er better capital appreciation. Only 38% o thosesurveyed occupied private condominiums or service apartments.

Just over hal (56%) o them had been staying at their current premises between0-5 years.


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Almost a third (31%) o those surveyed intended to buy a property in the next 6 to 12months, ollowed closely by 29% who intended to buy a property in the next 6 months.This could indicate that either the survey correspondents are waiting or the right timeor right property to buy or invest, or that they are simply saving up money or thedownpayment.

There is also a perception among the Malaysian public that property prices inMalaysia will continue to increase, thus putting pressure on younger Malaysians torush to buy their dream home now be ore prices increase urther.


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At 73%, landed property was still the most popular type o property among thesurvey respondents, ollowed by 57% o those who were more interested in privatecondominiums or service apartments.


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In this series o Likert-scaled questions covering actors in uencing when Malaysiansurvey respondents were ready to purchase property, l ocation was still the mostimportant actor closely ollowed by price, whether they were buying it or ownstay or or investment. The third most important actor to these respondents is thepotential capital appreciation/return on investment (ROI), which is why location andprice were key considerations.

Location is a priority that investors and rst time homebuyers did not compromise on.This is not surprising as there is a direct correlation between location and the value oa property.

Indeed, a property located in a good location is assured o a better value. However, asland in urban areas become more scarce, many developers are orced to locate theirdevelopment urther away, which lead to the introduction o many new townships.


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Having decent shelter, adequate ood, good health care and education are basichuman rights, so it was a not surprise when the ndings revealed that 43% statedthat their main motivation to purchase property is to own their own property. Closeto a third (30%) were looking or rental income investment. 27% wished to purchaseproperty as investment or resale.

When it came to budget, almost 7 out o 10 respondents (70%) stated that theirbudget is under MYR500,000. With a majority o the respondents indicating that theircurrent annual income level is between MYR80,001 to MYR160,000, looking or a homeunder MYR500,000 is certainly a viable option.


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Overseas Property: Majority Cautious but the Brave Pre er Singapore, Australia andthe United Kingdom

Investing in overseas property market seems to be unpopular among the surveyrespondents at the moment. This could be attributed to the Eurozone crisis, which isa ecting economies worldwide.

Almost hal (49%) o those surveyed were not interested in investing in overseasproperty, most likely because o un avourable currency exchange rate, beingun amiliar with the local regulations, restrictions on property ownership as well as anunstable global economy outlook. Nearly a third (32%) was undecided on the matter.

However, CBRE, the international real estate advisory, stated that the top 5 investorsby country based on total investment volume rom 2010 to the rst hal o 2012saw Malaysia in second spot a ter the United States with RM11.57 billion worth oinvestments. Germany came in third, ollowed by Saudi Arabia and Qatar.

The responses generated rom the survey 6 months ago also generated the samesentiments, where 42% o respondents indicated that they were not keen on investingin property overseas and only a hand ul, 18%, were keen on doing so, while theremaining 33% were undecided.


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The top three destination o choice or overseas property investment were stillAustralia, Singapore and the United Kingdom. Similarly to the previous survey results,about hal o those surveyed (50%) will only invest in overseas properties a ter 2 years.

With Australia, Singapore and the United Kingdom being amongst the riendliest countries toMalaysian investors, it was not surprising that about hal o the interested respondents who werekeen in purchasing property overseas (50%) indicated the reason they would buy property inthose location is because they wanted to migrate or retire there in the uture.


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Sentiments: Positive on the Economy, Concerned over Rising House Prices

The countrys population now stands at about 28 million, with an average growth o2% per year, while the existing stock o residential homes is about 4.5 million with584,546 o incoming supply based on the Property Stock Report 2011 by the NationalProperty In ormation Centre.

As such, by averaging 5 to 6 people per household, there is already equilibriumbetween the population and housing supply, thus there should not be any pressure onhouse prices.

However, similar to the previous survey ndings, a ordability and rising house pricescontinue to remain the biggest concern or the survey respondents. However, thistime around, errant developers and building quality trumps home nancing policiesand interest rates as the second biggest concern, probably because o the recent risein the number o cases o abandoned projects and de ective buildings.


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Just over hal (52%) o those surveyed considered the current economic and politicalclimate to be conducive to property investment. This gure re ects a slight reduction

rom the previous survey as the market is anticipating the upcoming General Election.

Bank Negara Malaysias (BNM) more restrictive lending guideline was introduced in1st January 2012. The move saw BNM lower the loan-to-value (LTV) mortgage cap orthird house nancing rom 90% to 70%. To gauge whether survey respondents alsoagreed that the move would moderate speculative activity in the market, just over hal(54%) o those surveyed believed that this measure will achieve that objective.

In the previous budget, the Government announced that it has reactivated the RealProperty Gains Tax (RPGT). The RPTG has been increased (10% or the rst two years,

5% in the third through th year o disposal, no tax will be imposed on property solda ter the th year) to also help curb speculation.


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In comparison to the previous survey, the ndings have indicated that surveyrespondents were still divided on its e ect with 42% believing that it has helpedcurbed speculation versus 42% who thought otherwise.

Among those surveyed, 43% did not believe that the RPGT will help contain surginghousehold debt in the country versus 34% o those who believed otherwise.


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To help prevent the rise o abandoned projects by errant developers, The Housingand Local Government Ministry made the ollowing amendments to the HousingDevelopment (Control and Licensing) Act 1966:

- Developers to deposit 3% o the estimated project cost- A MYR500,000 ne or developers who abandon their projects- A maximum three-year jail term or developers who abandon their projects

These amendments were also in line with the Governments move towards the housingindustrys widespread acceptance o the build-then-sell system by 2015. Nearly hal (47%) o those surveyed were supportive o this ruling and believed that itwill help reduce the number o abandoned projects in the country.


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A ew months ago, the government unveiled a scheme o ering 100% nancing torst-time buyers to own a home.

The Malaysia My First Home Scheme (MFHS) was targeted at young Malaysiansearning less than RM3,000 monthly to buy his or her rst a ordable home.Although the scheme has been improved by increasing the ceiling price o houses toMYR400,000, nearly hal (49%) did not believe that this measure has helped rst timeproperty buyers.

This is quite a drastic increase rom the previous surveys gure where only a third othe respondents (33%) elt the same. This indicates that the majority believes that theset ceiling price does not match the actual market price or homes in many locations,and that very ew homes in urban areas actually meet the criteria.


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A whopping 51% o those surveyed believed that more should be done to protectproperty buyers in the country in lieu o the many cases where property buyers areo ten victimised and errant developers abandoning their projects. Only 30% o thesurvey respondents think otherwise.


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In lieu o the upcoming Budget 2013 , respondents were asked which o the ollowingpolicies they were concerned about and the ndings revealed that their three biggestconcerns were :

Tax deductions on housing loans (61%)

Lower interest rates (60%)

Better housing schemes (58%)

These actors were the main concerns as it is most likely to a ect the prices oproperty by making it more a ordable.


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Indonesia, which has the worlds ourth largest population (245 million as o January2012) and strong economic growth, is experiencing a thriving property market. Atleast one research house has come out to support this view.

Citi Research is positive on the Indonesian property sector saying its undamentals lookstrong. In a recent report by the research house, it was stated that, the demand orproperty continues to outstrip supply and new launches are quickly being absorbed.

Citi Research also added that the new rules that set a maximum loan-to-value ratio orhousing loans at 70% to prevent a property bubble rom developing would have littleimpact on the market. The report also stated that, Banks are aggressively providingmortgage loans, and even a lower LTV [loan-to-value ratio] o 70% is unlikely todampen demand.

However, in its current state, its ull potential, especially in the residential real estatesector has yet to be ul lled. Among some o the actors that are holding backIndonesias housing market were high tax rates, overly complicated bureaucracy,expensive building materials, high mortgage interest rates and onerous restrictionson oreign ownership. The countrys highly variable in ation rate also discouragesborrowing to nance house purchases.


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Demographics: Majority wants to Own Their Own Home

63% o rumah123.com and rumahdanproperti.com respondents surveyed were male.And just like Malaysia and Singapore, the number o emale survey respondents inIndonesia has also increased slightly. The occupations o these respondents were quiteevenly spread out between admin (22%), entrepreneurs (20%) and pro essionals (19%).

Nearly a third (31%) were in the 26-30 years age group, ollowed by the second largestage group, those between 31-35 years, at 26%.


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A whopping 83% o the survey respondents had an annual household income belowIDR100 million , while 12% o them made between IDR101 million and IDR200 millionper year.

The majority (45%) o the survey respondents considered themselves PropertyBuyers, while another 19% considered themselves Property Owners. Only 1% o thosesurveyed were expatriates, which is only hal the gure rom the previous survey.


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Only about one in 10 (12%) o those surveyed owned more than one property, with41% owning just one. However, 47% o survey respondents reported not owning asingle property.

The v ast majority (90%) o the Indonesians surveyed occupied houses, while only 5%and 3% occupied SOHOs and apartments respectively. This re ects a clear pre erence

or landed property.


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More than hal (54%) o those surveyed have only occupied their current premisesor less than 6 years, while the rest o them are quite evenly split between the other

categories, i.e. 6-10 years (16%), 11-20 years (15%) and my whole li e (15%).

The majority (82%) o the survey respondents have the intention to buy property inthe next 6-12 months. This clearly re ects their optimism on home ownership in thenear uture.

Prices in Indonesias housing market were projected to grow more than in any otherSoutheast Asian country, with consistently rising prices in all housing segments.

Housing prices in major cities grew 3.6% in the rst quarter this year compared to thesame period last year. However, housing price growth slowed to 0.8%in the rstquarter this year compared to 1.2% growth in the ourth quarter o last year.


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Not surprisingly, houses top the list o the respondents avourite type o property(7%), while SOHOs (21%) came in at a distinct second. This is supported by the act

that the landed property market in Jakarta, the capital o Indonesia, remains strongwith prices jumping about 31% last year over 2010.


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In this series o Likert-scaled questions, location and price remains the major actors or the survey respondents just like in the previous survey. Location is still the biggestactor or them as mostly likely the trafc situation in the urban areas is a big in uence.

72% o those surveyed wished to possess their own property , which is a hugeincrease rom the previous survey gure o just over hal . Almost one th (20%) o therespondents were seeking rental income investment, while the remainder (8%) plan toinvest in property or resale.


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O those seeking to purchase property, 63% had a budget below IDR200 million, while a third (29%) o those surveyed had a budget o between IDR201 million andIDR500 million.


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Overseas Property: Planning or the long run According to property consultancy Knight Frank, 60% o Indonesian billionaires area ter property in Singapore and Australia because o the accommodating regulationsin place or oreigners there.

It was also revealed that Indonesians bought 1,714 units o property in Singapore,compared to 430 units in 2000. Another reason or the trend was the goodinvestment climate in Singapore and Australia.

In Indonesia, oreigners cannot own a building ownership certi cate, but can onlylease property or 25 years and then extend that or another 45 years.

The Straits Times reported in February that Indonesians were buying many o themost expensive homes in Singapore. Chinese nationals were the top buyers inSingapore, but Indonesian citizens were dominating city centre deals.

Despite these ndings, respondents were divided in their answers on whether theywanted to purchase properties overseas. 43% were undecided, 32% said they werekeen while 25% indicated that they were not.


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While the responses were divided, out o the 3 2% who were keen on purchasingproperty overseas, 81% said that they wanted to buy property within the next 6 to 12 months.

It was undisputable that that the top choices were still Singapore (49%), Australia(14%) and Malaysia (10%). The International Real Estate Federation or the Asia Paci cregion, attributed it to Singapore and Australias robust legal systems, liveability andrules about oreigners owning property.


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Most o the Indonesian buyers (58%) indicated that their main intention to purchaseproperty overseas was or investment purposes as rental yields were high , whilesome (20%) wanted to purchase property there due to the avourable exchange rates.Only 18% cited migration as the main reason or property purchase.


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Sentiments:

Errant developers and build quality were the greatest concern or those surveyedin the previous survey. In the current survey results, the majority o the surveyrespondents (73%) were most concerned about a ordability and rising house prices,while 65% o them were concerned about errant developers and build quality.


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Similar to the gure rom the previous survey response (73%), 69% o those surveyedelt positive that the current economic and political environment was conducive or

property investment.


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E ective 15 June 2012 the regulators or non-bank and banking nancial institutions(Ministry o Finance and Bank Indonesia) have en orced regulations that requiresdownpayments or new home and vehicle. The regulations are aimed at mitigating therisk o avoiding a property bubble and minimising credit risks. However, property andautomotive sales would adversely be a ected.

Financial regulators began to en orce a minimum down payment o 30% orcustomers buying houses with loans. Previously, housing down payments werenot speci cally regulated but banks typically asked or a 20% downpayment. Thegovernment has also revoked housing nancing liquidity acility (FLPP) loans orhouses smaller than 36 sqm.

The downpayment rule will cause a slowdown in the housing markets middlesegment, but this will not be signi cant. With FLPP no longer implemented, this willa ect the lower segment o the housing market.

Seven in 10 (71%) among the survey respondents did not think this was a good

move at all, which is not surprising considering the majority of them had a low

annual household income. This would mean it would take longer or them to purchasetheir own property as they would have to save up more or the downpayment.


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Not surprising that about hal o those surveyed (51%) think that 10% is the idealgure, while the remaining amount should be shouldered by the nance institutions.

Housing credit is a credit acility granted by banks to individuals who want to buy ordo renovations to their home. In Indonesia, there are currently 2 types o mortgages:

Mortgage Subsidy - Which is a credit allocated to the income lower middle inorder to meet housing needs or home improvements which has been owned.It is given in the orm o subsidies: Subsidised credit is regulated by thegovernment, as such, not every community who apply or credit may be grantedthis. In general, the restrictions set by the government in providing subsidies arebased on the applicants income and the maximum credit given.

Non-subsidised mortgages - A mortgage intended or the whole community.The provisions are set by the bank loan, so that the determination o the amounto credit and interest rate per ormed is according to the bank policy concerned.


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77% agreed with the subsidised interest rate through FLPP by the government .

More than hal (57%) o those surveyed are optimistic about the programmes e ectand believed it will give them an opportunity to buy a property.


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Similarly, 55% o the respondents are against new regulations to allow oreignownership o properties in the country, even though the majority o them had apre erence or landed property.

A whopping 88% o the respondents believed that property prices in the country willcontinue to increase in the uture.


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Not surprisingly, 74% o the respondents think that allowing oreigners to buyproperties in the country will lead to urther increase in property prices.


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According to the latest gures published by the Urban Redevelopment Authority(URA), residential property prices in Singapore ell by 0.1% in the rst three monthso 2012. This compares with a 0.2% increase in the previous quarter and is the rstquarterly all in prices since the second quarter 2009, ollowing nine consecutive

quarters o declining price increases.

The deterioration o the Eurozone debt crisis has a ected the private housing marketin Singapore. Feedback rom various market players indicates a signi cant marketslowdown in home purchases in both the primary and secondary markets duringthis period. This reafrms the view that most o the current home buying consists oinvestments rather than or owner occupation.

Home ownership in Singapore is a unique state o a airs due to the hugely

success ul e orts o its Housing & Development Board (HDB), resulting in a highrate o public housing occupancy and a very small rental sector, mostly cateringto expatriates. Over 50% o Singaporeans live in ats developed by the Housing& Development Board (HDB).


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Demographics: Well-Heeled Executives and Professionals

Singaporeans who answered the survey were 54% male and 46% emale. The surveyre ects an increase in emale respondents just like in Malaysia. However, unlikeMalaysia, the largest age group (at 25%) was those between 41-50 years.

Almost a third (31%) o the survey respondents held an executive/managerial position,ollowed by pro essionals (21%) and those who are sel -employed (14%).


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45% o those surveyed reported an annual household income o S$60,000 or less,while a signi cant minority (21%) earned above S$140,000.

Nearly a third (32%) o the survey correspondents identi ed themselves as PropertyOwners, while about a th (20%) described themselves as Property Buyers. The restwere divided between Investors (17%), Real Estate Pro essional/Property Agent (15%)and Tenant (11%).


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45% o those surveyed owned only a single property . 29% owned more than oneproperty, while slightly more than a quarter (26%) reported owning no property otheir own.

According to Singapores Housing and Development Board, HDB is home to about82% o Singaporeans, with about 90% o them owning their HDB at. As such, it wasno surprise that the survey revealed that more than hal (56%) o the respondentsreside in HDB ats. About a third (33%) o those surveyed occupied a privatecondominium unit. Slightly over a th (21%) o the respondents occupied alanded property.

According to a research by Jones Lang LaSalle, Singapore may experience a drop oup to 15% in prices o luxury homes this year as oreign demand dries up as a result otightening measures and global economic uncertainty.

The residential market in Singapore is expected to see a so ter demand in general dueto the weaker economic conditions as well as government policy risk.


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Despite a report released by CNBC Asia in April 2012, which stated that the residentialmarket in Singapore is expected to see so ter demand in 2012 given weaker economicconditions as well as government policy risk, more than hal o the respondents,62%, indicated that they would like to buy property within the next 6 to 12 months.This con rms the results obtained rom the previous survey ndings in which 68% osurvey respondents indicated that they wanted to buy property.

The Ministry o National Development (MND) and Urban Redevelopment Authority(URA) have given assurances that there will be sufcient supply o homes andthat they will make more sites available, i necessary. As such, to provide greatertransparency, these entities have been providing the public with more in ormation onthe property market.

Just like the previous survey result, private condominiums (67%) remain the mostpopular type o properties in Singapore. This could indicate that a majority o therespondents are looking to upgrade their existing homes. Close to a third (29%) o thosesurveyed showed interest in landed property, while 27% were interested in HDB ats.

According to Knight Frank, Singapore is the most expensive market or high-endproperties in Southeast Asia, and the main drivers o luxury homes in Singapore comelargely rom international buyers rom China, Indonesia, Malaysia and India. Propertiespriced above $2500 ps are broadly classi ed as luxury in Singapore.


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In this series o Likert-scaled questions, both location and price were considered themost signi cant actors by a total o 1103 and 889 respondents respectively. Among theleast important actors were recommendations as well as political and economic climate.


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33% had a budget o less than SGD500,000, while almost hal (50%) had a budgetbetween SGD500,000 and SGD1 million.


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Overseas Property: Divided in Decision to Buy

38% o the survey respondents showed a keen interest in investing in overseasproperty. This is hardly surprising as Singapores currency is one o the strongest andmost stable in the region, making property investment overseas a ordable. It can alsobe said that, due to scarcity o space and or the same value o money, Singaporeansare able to purchase landed property in neighbouring countries.

However, international buyers, largely rom China, Indonesia, Malaysia and India havebeen the main drivers o luxury homes in Singapore, which according to Knight Frankis the most expensive market or high-end properties in Southeast Asia.

Properties priced above S$2,500 per square oot are broadly classi ed as luxuryin Singapore.

About a third (34%) o those surveyed were 50% more interested, while 41% o themindicated that their interest in overseas properties were not more than 25%.


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Similar to the previous survey results, the survey respondents considered Malaysia(33%) and Australia (19%) to be their most pre erred overseas locations. This can

be attributed to the act that unlike its neighbouring countries such as Thailand andthe Philippines, Malaysia makes it airly easy or oreigners to buy property due to theMalaysia My Second Home Programme (MM2H).


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A third (33%) o the survey respondents who i ntended to buy an overseas propertyplanned to do so 1 to 2 years rom now, as they are most probably waiting or theoverall nancial and property market to show signs o recovery.

38% o those surveyed cited retirement or migration as being the main motivationor buying overseas property, while 32% cited avourable exchange rates. This could

indicate that many Singaporeans would like to spend their retirement years inAustralia or Malaysia, as the latter has a lower cost o living while Australias currencyis similar to that o Singapore.


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Sentiments: Adopting a wait-and-see approach

According to 86% o the survey respondents, their paramount concerns about theSingapore property market were a ordability and rising housing prices . Most areadopting a wait-and-see approach in the hope that property prices will come down.Economic and political uncertainties were the least o their concern this time aroundunlike the previous survey..

Data obtained rom the Urban Redevelopment Authority also showed that privatehome sales have gradually allen in the past ew months. In addition, Singapore is alsoexpected to see a surge in the supply o new units over the next ew years both in theluxury and mass market segments, which will add urther pressure on prices. A littleover 32,000 new units will be completed in 2013 and 2014, 85% more than the numbero units slated or completion in 2011 and 2012.


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81% o Singaporeans taking the survey did not think that the prices o HDB atsshould be higher than that o private properties.

More than a third (40%) o those surveyed believed that they could a ord to own ahome in the current property market, while another 39% was undecided.


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Almost our out o ve (80%) o the survey respondents elt strongly that theSingapore government should continue to be involved in maintaining the prices oresale HDB ats at an a ordable level.

Just over a third (34%) o the respondents think that a signifcant rise or drop inprices will show in the next 6 months, while more than hal (54%) o them believedthat it would take 9 months or more.


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Only 40% o the survey respondents believed that the Governments Land SalesProgramme could help manage the rate o property growth in the country.

The price increase o shoebox apartments have been outpacing gains in overallapartment prices since the property market recovery ollowing the global nancialcrisis. However, shoebox apartments have made overall home prices in Singaporemore volatile, with sharper price gains than larger homes. This is a key nding in ananalysis by the National University o Singapore (NUS) real estate department.

63% thinks that the Singapore government should step up in their e orts to monitorthe number o shoebox apartments in a residential development.


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A majority o those surveyed (59%) believed that not enough is being done to helpsingles, senior citizens, divorcees and other minority groups to own a home, ascurrent property prices in the country are beyond the reach o the majority o these

groups.


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Survey respondents were divided on how conducive the economic and politicalclimate was to property investment. Their response was almost evenly split with 42%believing that the climate was conducive, while 38% elt other otherwise.

Recently, the Council or Estate Agencies (CEA) imposed a new ruling that requiresthose who are holding other jobs to secure their employers consent rst, be orebecoming agents. The new ruling was said to be implemented as part o a regularreview to enhance the level o pro essionalism o real estate agents in the country.

Hal o the survey respondents (50%) were avourable towards the new ruling asit will help improve the quality o real estate agents. iProperty.com Singapore alsoviews the CEA regulations in a positive manner and believes that the intention at theend o the day is to protect the interest o not just the real estate agents but alsoconsumers.


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The majority o the respondents (76%) rated the pricing o new HDB ats as theirmost important concern, closely ollowed by other concerns such as housing

a ordability or lower income groups (71%) and home nancing policies and interestrates (66%).


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According to a report in South China Morning Post, only minor price xes have beenseen despite the recent cooling measures taken by the government the past two yearsto keep house prices under control in Hong Kong.

It was also reported that in Hong Kong, house prices have reached peak levels, makingit ar beyond the median income or an average citizen.

Despite this, the survey ndings have revealed that nearly 60% o survey respondentsare optimistic about the property market in the second hal o the year, with localproperty prices hitting a record high in the second quarter this year.

Both Hong Kong and the central government are now trying to address thea ordability issue by increasing the supply o public housing. Hong Kong is increasingpublic housing or low-income groups as well as resuming and modi ying the HomeOwnership Scheme or medium-income households. The mainland plans to build 36million subsidised apartments by 2015.

However, since the supply o public housing is not expected to increase dramatically inthe near uture, we expect a ordability o housing will remain a big issue.


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Demographics - Post-80 Generation with Desire to Purchase

57% o those responding to the GoHome.com.hk survey were emale while 43% weremale, which is a vast di erence rom the previous survey results which has higherpercentage o males (56%) to emales (44%). Ages rom 30-49 years were wellrepresented 66%.

In comparison to the previous survey results, there is a larger percentage o clericaland administrative positions (38%) while pro essionals were the next largest group(21%), while those who held an executive/managerial position represented 12% o thesurvey respondents.


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32% o respondents reported earning an a nnual household income betweenHK$200,001 to HK$400,000, while 35% reported an annual income between

HK400,001 to HK$800,000. Only 11% o survey respondents reported an annualincome o above HK$800,001.


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53% o those participating in the survey were property buyers, which was a slightincrease compared to the previous survey ndings (52%). A signi cant minority (33%)were tenants. 49% o the survey respondents also reported owning no property while37% reported owning one property. Just 14% reported owning more than one property.

Among them, 55% live in sel -owned properties ; 30% rent private properties and 15%live in public houses/home ownership scheme ats.


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The survey shows Hong Kong people trade up their properties once every fve yearson average, with 67% revealing that they had only occupied their current premises

or less than 5 years.


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35% o respondents were considering purchasing a property in the second hal o thisyear, with a quarter o these (25%) planning to purchase a new at, r e ecting a strongdemand or frst-hand residential units and the transaction o new properties isexpected to increase.


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In this series o questions, price was considered the most signifcant actor inpurchasing property, ollowed by location and transportation. Recommendations by

riends, amily and agents were considered the least important.

On this scale, a rating o 10 indicates the highest importance and a rating o 1represents the lowest.


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Overseas Property: Not an Option

Only 15% o survey respondents expressed interest in purchasing property overseas, while a vast majority, 71%, expressed a lack o interest in the overseas property market.

O those interested in overseas property, interest was split broadly across manyoverseas locations, with China (24%) being the avourite .


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O those who are interested in overseas property, over hal (52%) wanted topurchase property in at least 2 years or more rom now with 43% citing migration orretirement plans as the main reason o interest.


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Sentiments: Mellowing Down

75% o property sellers believe that property prices will stabilise or rise toacceptable level. Among them, 54% are considering selling their properties in thesecond hal o 2012, re ecting a more active supply o secondary market propertieswhen compared to the rst hal o the year.

With the new government taking ofce on 1st July, much attention has been drawn towhether existing housing policies would change. Over hal o the survey respondents(51%) believe the new government would have minimal impact on the local propertymarket and property prices as a result are unlikely to uctuate signi cantly.

However, about 30% o respondents (29%) expect a decline in property prices. Inparticular, nearly hal o the respondents in the high-income group expect propertyprices to decline. This reveals uncertainty among these respondents about the uturehousing policies and ear that the new administration may suppress property prices.


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73% believed that the decision by the Estate Agents Authority (EAA), rom 1 January2013, which requires agents to provide in ormation on saleable area o a second-handresidential property to clients, would not impact their decision to purchase propertyin the second hal o 2012.


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The top three housing policies they expect to be launched are resumption o HomeOwnership Scheme (HOS), resumption o Home Starter Loan Scheme (HSLS) andincrease land supply. These three policies are expected to present a signi cantimpact on the development o the property market in the second hal o this year.More notably, these ndings, to a certain extent, suggest that those who have neverpurchased a property expect the new government to undertake measures to curbproperty prices so that they can a ord to own a at.


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The Overall Property Market in 2012

Sentiments among the Asian real estate markets is expected to continue on itsdownward trend going into the nal quarter o the year, according to the reportEmerging Trends in Real Estate Asia Paci c 2012 by PwC.. Overall, the reaction o thereal estate markets in Asia is driven by events around the world.

Although ASEAN as a whole is showing more growth, investors are currentlyexperiencing more apprehension than in the past year. The common belie held bymany is that the economy will be very volatile in the next ew years with severalpotential event risks.

The nancial concerns o the United States and Europe continue to have a signi cantimpact on the Asia Paci c markets. The PwC report stated that, going into the newyear, investors will evaluate based on the quality and undamentals o each location,while property buyers will be more selective in their investments.

In Asia, banks continue to provide the lions share o unding or real estate investmentwhile at the same time o ering ultra-low base rates. However, the latter will not remainthe same way inde nitely. According to industry pundits, how the situation will playout remains unclear.

Fluctuations in the real estate market o some parts o Asia have been partly triggeredby stringent measures on bank lending to developers, which was introduced bylocal regulators a ter several years o loose economic policy, thus causing prices toescalate. The PwC report pointed out that, in Hong Kong and Singapore in particular,authorities have introduced macro-prudential policies to combat rising home values.

In both the commercial and residential markets, Singapore has experienced anaggressive pricing dynamic, a condition that has become a genuine concern orindustry players. The di erence between Hong Kong and the island nation, however, isthat the latter has a substantial amount o mass market housing supply in the pipeline.

In Hong Kong, an in ux o capital rom mainland investors, coupled with ultra-lowinterest rates resulting rom the special administrative regions currency pegged tothe US dollar, have pushed home prices to record highs, especially at the top end othe market.

The report also stated that Singapore has also been experiencing asset price in ationas a result o a similar exchange rate policy. In each case, authorities have respondedby imposing new stamp duties on a sliding scale or residential properties ippedwithin two years o purchase.


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Malaysia - Continues to Be A Buyer Friendly Market

The Real Estate and Housing Developers Association Malaysia (Rehda) expected thehousing and property market to remain resilient in the second hal o 2012. Accordingto a survey Rehda conducted, the property market in the rst hal o this year wasdriven by the domestic market, despite a common perception that oreigners werebuying more local properties. The survey also revealed that property developers are optimistic about the secondhal o the year and plan to launch projects. However, these developers were lessoptimistic o the rst hal o 2013 due to actors such as the outcomes o the 13thgeneral elections and Budget 2013, as well as uncertainties about the current globaleconomic situation. Overall, the property market continues to be a buyer riendy market, amidst concernsabout tighter lending rules, over-speculation and rising property prices. The latter isbrought about by actors such as rising building material costs, shortage o primeland, record-low mortgage rates as well as speculative activities.

Indonesia - An Emerging Market

According to Emerging Trends in Real Estate Asia Paci c 2012 by PwC, theIndonesian economy appears to be one o the most balanced in Asia Paci c as theglobal market does not weigh as heavily on the country as it does on others. The chiedriver o the Indonesian economy is private consumption, and orecasts have shownthat prospects in that arena will remain bright well into next year.

In general, the political and macroeconomic climate in the country has become morestable in recent years. The strong economic growth and high levels o investment hascontributed to the growth o Indonesias housing market. Rapid urbanisation has resultedin high urban densities, which has lead to the price rise witnessed in new construction.

Although there is tremendous pent-up housing demand, the majority o the peoplein the country are unable to a ord their own homes due to actors such as highmortgage interest rates, oreign ownership restrictions, high costs o buildingmaterials, high tax rates and red tape in government.


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Singapore - A Resilient Market

In recent years, Singapore has been a magnet or regional investors. In act, the islandnation is among the top 3 choices or investors rom Indonesia, Malaysia and HongKong. However, the environment is now less rosy than be ore as there are generalconcerns that the market may have peaked.

As such, some investors are getting ready to cash in on their pro ts, while othersare adopting a wait-and-see approach with the hope that the situation will improvebeyond 2013.

To contain the situation, the government has taken steps to make more land availableor development, as well as approving redevelopment and reclamation works. The

need to maintain property prices in the a ordable range is crucial as it is key to thenations economic development.

Singapore, being an open economy, is vulnerable to global events, unlike countriesthat have much larger domestic markets. Despite the cautious outlook, industrypundits remain con dent with the property market in Singapore due to its growingpopulation, and strong immigration and tourism growth.

Hong Kong - Unconscious o Risk

Genuine homebuyers in Hong Kong still pre er to trade up their properties despitelocal property prices hitting a record high in the second quarter o this year. The high-income group, in particular, tends to trade up every ve years, accounting or 45% othe respondents while the middle- and low-income groups tend to trade up every sixto 10 years.

A minority o the people in Hong Kong anticipated a drop in property prices a ter thenew government takes ofce, with much attention drawn to whether existing housingpolicies would change. Most, however, held the belie that the new government wouldhave minimal impact on the local property market, thus property prices are unlikely to

uctuate signi cantly as a result.


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Australia: In Great Demand

Australia is among the top 3 overseas locations to buy a property or investorsrom Malaysia, Indonesia and Singapore. The country is appealing or a number

o reasons. One actor attracting oreign buyers is that unlike other countries inAsia, Australia has a market that is liquid.

According to PwCs Emerging Trends in Real Estate Asia Paci c 2012, it is alsoone o the best markets in the region rom a transparency point o view, with aculture that is riendly to Asians. In addition, unlike the situation in many Asian

destinations, the lease structures tend to be longer term, and rom an occupier-demand point o view, the market is currently at the bottom o the cycle,pointing to likely upward movement in rents.


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