Previous Issue’s Results for iProperty.com’s Poll
Will the government's expected phasing-out of subsidies affect your property-buying decision?
I will buy as I expect property prices to go up
40% (155)
I will sell as I am not happy with how things may turn out 8% (29)
I will wait and see as the government keeps changing its mind 38% (146)
Not sure 14% (53)
Buying Trend
The good news is the property market is seeing a lot of positive interest from property buyers and investors. Almost half (40%) of the 383 respondents intend to buy as they expect prices to go up when subsidies get phased out. This is to be expected as inflation levels will go up when subsidies are dismantled. Buying property hedges against inflation and saves you from paying increased rentals.
However, just as many (38%) of the participants responded with a wait-and-see stance, seeing that the government keeps changing its mind with respect to policy decisions.
True enough, till today, there have been few withdrawals or reductions of subsidies. Expectations of a general election round the corner may have something to do with it. Quite likely too, this group is influenced by the uncertainties of the second half, despite various quarters pronouncing it as a continuation of the first half’s market confidence.
Numbers to Reckon With
The fence-sitters comprises of 14% or 53 respondents, which is a small number compared to those interested to buy or waiting to see. Understandably, the state of our country’s economy leaves much to be desired, to some of us. The perception that our country is lagging economically behind countries such as Thailand and Indonesia, and a general apathy towards the government’s pronouncement may have caused this group to be rather skeptical about committing themselves.
Interestingly enough, a small percentage of our readers (8%) want to sell off. This ties in with our previous poll where a majority are thinking of emigrating. Why buy properties which are not as liquid as other investments when you are already mulling the idea of leaving the country for good?
This disillusioned group may not appear to be significant, but they still form a force to be reckoned with if the fence-sitters decide to join them. Hence, more need to be done to shore up confidence in the economy. When the numbers for potential buyers reach more than 50%, that’s the time when you know the tide is turning and a boom might be in the offing.
