Right place, right time?

Is it time to think about buying a new house? Industry experts address some property buying myths

Gilbert Wong

MYTH: You can save more money buying during a downturn because of potentially lower property prices.

“It really depends on the situation, as this hinges on the assumption that the value of the property bought will likely rise after the downturn. The buyer should also not incur other significant expenses like Additional Buyer’s Stamp Duty (ABSD) especially if they already own multiple properties, which will add to the cost of purchase.” — Ms Christine Sun, head of research & consultancy, OrangeTee & Tie

MYTH: It’s easier to find property options during this period.

"True, it’s a buyer’s market. Buyers tend to have more opportunities as there is no sudden rush to snap up projects. They can take their time and make a proper informed decision.” — Mr Ismail Gafoor, chief executive officer, PropNex Realty

MYTH: Property prices are expected to depreciate significantly due to the pandemic, so buyers should not rush to buy.

“Fire sales are highly unlikely in this market cycle due to the control measures implemented since 2011. Compared to the previous few crises, the current housing market is more stable. Speculation (measured by sub-sales) is negligible at 1 per cent in Q1 2020.” — Mr Lee Sze Teck, director (research), Huttons Asia

MYTH: Property prices will be impacted by lower sales volume.

“For demand to drop significantly to bring down property prices, we have to be in a situation of severe economic downturn, which we are not. The situation in Singapore is very well managed. Things may have slowed down during the circuit breaker, but is likely to pick up in the second half of 2020. Prices will likely remain flat during this period and recover in 2021.” — Mr Eugene Lim, key executive officer, ERA Realty Network