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|January 27,2025

The Psychology Of Property: Why We Buy What We Buy

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Why did you choose that home? Was it love at first sight? The stunning balcony view? Or maybe it was that irresistible showflat, perfectly decorated with scented candles and soft lighting that whispered, "I could be yours."

The truth is, buying a home isn't just about logic, numbers, or practicality. It's about emotions, habits, and clever psychological triggers that influence us in ways we don't even realise.

Developers know this. Real estate ads know this. And showflats? Oh, they're the masters of playing with your mind (and your wallet).

So, what really drives us to say, "This is the one"? Is it nostalgia? Status? Or that irresistible FOMO when many others are going for a particular project?

Let's dive into the fascinating psychology of property buying and uncover the subtle (and sometimes sneaky) reasons why we buy what we buy.

The 'dream home' - Is it really your dream?

We all have an idea of what our "dream home" looks like - a sprawling garden, a sleek modern kitchen, or perhaps a unit at a high floor with a view that takes your breath away. Me? I do love a unit with a good view. While I have had the opportunity to live in a landed property when I was living in Brisbane, nothing beats a house with a good view, especially one where you can view the endless horizon and sunset (I'm a sucker for sunsets). While all these requirements do sound good, have you ever stopped to think: Why is this my dream home?

As it turns out, the homes we crave often have less to do with practicality and more to do with emotions, memories, and - believe it or not - our social media feeds.

Childhood memories play a role

Think back to your childhood. The home you grew up in quietly shaped your idea of what feels comfortable, secure, and "right."

  • Big garden, big dreams: If you spent your younger days playing in a backyard or a landed property, you might instinctively associate space with success.

  • Cosy comforts: On the other hand, if you grew up in a snug HDB or private condominium, smaller spaces may feel more practical, familiar, and less overwhelming.

Of course, this is not a one-size-fits-all mindset. The key point that I'm raising here is that the psychology here is simple: nostalgia is powerful. A home that resembles your childhood can trigger a sense of safety, even if it doesn't make sense for your current lifestyle.

"Ever walked into a place and thought, 'This feels like home' - even if you can't explain why? That's nostalgia doing its thing."

The Instagram effect

Ah, social media. Where homes look like curated art galleries with perfect lighting and zero clutter. Platforms like TikTok, Instagram, and Pinterest have redefined what "dream homes" should look like: minimalist white walls, caf-style kitchens, and bedrooms so aesthetic you can almost smell the lavender candles.

But here's the catch:

  • We're buying the aesthetic, not the practicality: That open kitchen might look stunning in the photo or video, but it also means the rest of the house is going to smell when you cook.

  • We want what we see: The psychology here is called "visual influence." Seeing beautiful homes repeatedly makes us crave the same look - even if it doesn't align with what we really need.

"Raise your hand if you've saved a Pinterest board titled "Dream home goals."

Sometimes the "dream home" isn't a reflection of our real needs - it's a reflection of the life we imagine having. So, the next time you walk into a showflat or view a potential unit, and feel your heart skip a beat, take a moment to ask yourself: Is this really my dream... or someone else's highlight reel?

Location, location... Psychology?

We've all heard it before: "Location is everything!" or "East side best side." But what if I told you that our love for certain areas isn't just about convenience or price? It's about how our brains perceive value, status, and even happiness.

Welcome to the sneaky psychology of location.

The prestige factor

Let's face it - some postcodes just have that ring to them. You know the ones: Orchard Road, Bukit Timah, Sentosa Cove. These areas don't just come with homes - they come with a sense of pride.

  • When you hear someone say, "I live in D10 (Tanglin, Bukit Timah, and Holland)," it's not hard to think: Wow, they've made it.

  • It's not always logical, but it's human nature. Certain estates scream status, and we can't help but associate them with success and lifestyle.

This is called social proof - when everyone believes a location is "the place to be," we follow along, even if it doesn't match our needs.

Anchoring bias: The first impression trap

Here's something sneaky your brain does without telling you: it sets benchmarks based on the first thing you see.

Imagine you're shopping for a home:

  • You have just viewed a $2.8 million condo unit with an amazing unblocked sea view.

Source: PropNex.com

  • The next unit you will be viewing has an asking price of $2.4 million, but no sea view.

Logically, $2.4 million is still a huge sum, but suddenly, it feels like a bargain. Why? Because your brain anchored to the $2.8 million price first.

"That view might be breathtaking, but is it really worth the extra $400,000... or did the first unit just skew your expectations?"

However, let's rethink this: if the $2.4 million unit faces the neighbouring block with little privacy, the thought of topping up $400,000 for an unblocked sea view might suddenly feel tempting. After all, a great view is not just aesthetic - it can add to your home's liveability and even its long-term value.

That being said, it all boils down to one crucial factor: your affordability. While it's easy to let emotions or comparisons guide your decisions, you should always know what's within your financial means. A sea view is stunning, but being financially comfortable in your dream home is the true luxury.

Is the location really worth it?

So before you say yes to a home because it's in a "prestigious" area or because the showflat swept you off your feet, pause for a moment. Ask yourself:

  1. Do I want this location because I love it - or because everyone around me says it's great?

  2. Am I being swayed by my first impression?

  3. Did the showflat's magic cloud my judgment?

Because in the end, a good home isn't about what others think - it's about what works for you.

Do we buy homes or sell stories to ourselves?

Let's be honest - when we're looking at homes, we're not just buying four walls and a roof. We're buying a story.

It's the story of the life we imagine having: family dinners in the perfect kitchen, lazy weekends by the pool, or hosting friends in a sleek living room straight out of an interior design catalogue.

And you know what? Developers know this. Real estate ads know this. Your real estate agent might be using this tactic as we are speaking to nudge you toward a decision.

Emotional triggers we can't resist

Developers skillfully appeal to our emotions. They know the right words and visuals to make you picture your future life.

  • "Family-friendly neighbourhoods": You imagine your kids laughing in a park with other happy families.

  • "Luxury finishes": You see yourself living like royalty, touching that marble countertop as if it's solid gold.

  • "Resort-style living": Suddenly, you're not buying a home - you're buying a permanent vacation.

"It's not just a swimming pool - it's your Saturday afternoon escape from reality."

The power of FOMO

If you've ever heard these words: "Limited units available!", "Last 2-bedroom unit left!", or "This project is really HOT!", and felt your pulse quicken... you're not alone.

That's the psychology of scarcity in action. The idea that something is running out makes us want it even more. It triggers our fear of missing out (FOMO) and adds pressure to act now.

  • Showflats play into this perfectly - imagine walking through a unit and being told: "This layout is super popular; three were sold just this week."

  • Suddenly, your brain shifts: It's not just about loving the unit- it's about not losing it to someone else.

Showflats: The emotional hook

Showflats deserve another shout-out here because they're the ultimate storytellers.

  • Every corner feels lived-in but perfect - like stepping into a magazine spread.

  • The furniture is stylish and curated just right. No clutter. No mess.

  • Even the scent is planned to evoke warmth, luxury, and that "new home" feeling.

It's no accident. Showflats are designed to make you feel like you already belong.

The psychology here is powerful:

  1. Imagination triggered: You start visualising your life there.

  1. Possession mentality: The moment you think, "This is where I'd put my coffee machine," you're already sold on the idea.

"The perfectly stage kitchen isn't yours yet, but in your mind? You're already cooking Sunday brunch there."

Showflats: The magic of 'feel good' spaces

Ah, showflats - the real MVPs of emotional manipulation.

  • The lighting is just right.

  • The air smells like fresh linen (or lavender, if it's extra fancy).

  • The choice of furniture is flawless, with exactly the right amount of space.

Showflats aren't homes - they're fantasies. Every detail is designed to make you feel like you've already moved in and started living your dream life.

  • Psychology of possession: The moment you imagine yourself sipping coffee (or tea, if that's what you fancy) on that balcony, you're hooked.

  • Perception of space: Clever furniture placement makes a small unit feel spacious, tricking your brain into thinking, "This is perfect!"

"Ever wonder why showflats make you fall in love so quickly? It's because they show you how to live there, not just what you're buying."

Buying the story, not the home

Here's the thing: we're not always rational when it comes to property. Our decisions are influenced by the stories we tell ourselves about what life could look like.

And while that's not necessarily a bad thing, it's worth taking a step back and asking:

  • Am I buying the home - or am I buying the dream being sold to me?

  • Will my real life fit into this space as beautifully as the story suggests?

Because a home should serve you, not just your imagination.

Keeping up with the Lees (or Lims, or Rahmans)

We like to think we make property decisions based on our own needs and preferences. But let's be real - sometimes, it's less about us and more about keeping up with them.

Who's them? Your friends, your family, your colleagues. That one friend who just bought a condo with a private lift lobby and posted it all over Instagram.

Whether we admit it or not, comparison plays a huge role in why we buy what we buy.

The grass is greener next door

Social psychologists have a term for this: social comparison theory. It's the idea that we measure our own success by looking at others.

  • If your best friend just upgraded to a private condo, you might start thinking, "Hmm, is it time for me to do the same?"

  • If your neighbour adds a rooftop garden, you suddenly wonder why your balcony feels a little... bare.

It's not just envy - it's human nature. Seeing others make big moves motivates us to level up, whether we need to or not.

The Jones Effect

The term "The Jones Effect" comes from the 1913 comic strip Keeping Up With The Joneses, which humorously follows the socially conscious McGinis family as they strive to keep up with their wealthier neighbors, the Joneses. This psychological phenomenon describes how people are influenced by their peers to make decisions, often driven by a desire to match or surpass them. It is also commonly known as "herd mentality."

Source: The Independent Singapore

In Singapore, keeping up with the "Joneses" is a whole lifestyle. It is essentially the 'kiasu' spirit, which is a local slang that, in no better words, translates to FOMO.

  • Your colleagues are talking about the recent condo launches over lunch.

  • Your phone is buzzing with PropNex's latest updates on condo launches.

  • And suddenly, that HDB you've been living in for quite some time feels... meh.

"Why are we like this? Because when everyone else is upgrading, it's hard not to feel like you're falling behind."

This pressure doesn't just affect first-time buyers. Even seasoned investors can feel the pull of staying ahead in the property game. I would like to emphasise that a condo is not better than HDB.

But it's also important to recognise that not everyone is upgrading simply to keep up. Many do so because they genuinely want to improve their quality of life and are financially ready to make it happen. For some, moving to a private property or a bigger space represents a dream fulfilled - a better home for their family, more convenience, or simply a more enjoyable living environment.

Here's the good news: You can turn this pressure into an opportunity. Instead of feeling overwhelmed, take a moment to assess your own financial goals and lifestyle needs. The property journey is not about keeping up with others - it's about building a home and a portfolio that works for you.

With a clear plan, the right guidance, and a bit of patience, you can turn the 'Jones Effect' into your greatest motivator to make smarter, well-informed decisions. After all, the ultimate win isn't about comparison - it's about creating your own path to success

The iPhone analogy

Let's put it this way:

  • Your current home is like your trusty iPhone - it might not be the latest, but it still works perfectly fine.

  • But the moment your friend upgrades to the latest model, all of a sudden yours seem to feel slower, older, and "outdated".

Homes work the same way. It's not that your current place isn't great - it's that someone else's upgrade makes you want more.

The problem with following the crowd

While upgrading your property can be exciting, it's important to ask yourself:

  1. Am I upgrading because I need more space, better facilities, or a shorter commute?

  2. Or am I upgrading because everyone else is doing it?

"Homes aren't fashion trends. You don't need to 'keep up' - you need to focus on what works for your life

So before you dive into your next property purchase, take a moment to check in with yourself. Are you making this move for you or for the 'likes'?

The small things that sway big decisions

You'd think buying a home is all about the big stuff - price, location, size. But sometimes, it's the little details that pull us in and make us say, "This is it."

From colour psychology to the use of sounds and scents, here's how the small things can sway really big decisions.

Colours and layouts: More than meets the eye

Ever noticed how bright, airy spaces feel "happier"? That's not a coincidence - it's a psychology at play.

  • Light colours = Positivity: Soft whites, greys, and pastel tones make rooms feel bigger and calmer. Developers know this, which is why showflats are rarely painted in dark, moody colours.

  • Open layouts = Connection: Open kitchens, dining spaces, and living rooms evoke togetherness. They subtly say: "Imagine hosting friends here. Imagine family gatherings here."

"Turns out, it's not the space itself - it's how the space makes you feel."

The subtle power of scent and sound

Here's a fun one: Your senses can also influence your decisions.

  • Scents: A subtle hint of freshly baked cookies or vanilla can make a space feel warm and inviting.

  • Sounds: Soft music playing in the background makes you feel relaxed, calm, and ready to sign on the dotted line.

"Your brain associates smells and sounds with emotions. So, if a space feels good, you'll want it more."

Small things, big decisions

The takeaway? Little details - whether it's the layout, the lighting, or the scented air - can make a huge impact on how you feel about a property.

So the next time you step into a beautifully staged showflat, pause and ask yourself:

  • Do I love this home, or do I love how it's been presented?

  • Will it still feel perfect when the candles are gone and my actual furniture is in place?

Because while showflats work their magic, your real life deserves to shine through.

5 psychological hacks for smarter house-hunting

Buying a home doesn't have to be an emotional rollercoaster. With a few simple psychological hacks, you can stay grounded, make smarter decisions, and avoid falling for shiny distractions like showflat or agent magic.

Here are three easy hacks to keep you focused:

1. Anchor yourself before viewing

Before stepping into any showflat or viewing, take some time to define your non-negotiables:

  • What's your budget?

  • What features must the home have (e.g., location, number of rooms, facilities)?

  • What are you willing to compromise on?

By setting clear benchmarks upfront, you'll avoid getting swept away by emotional triggers like fancy interiors or sales pitches.

"Think of it as wearing emotional armour - you're ready for anything they throw at you!"

2. Be wary of the 'comparison trap'

Developers and agents love to compare units to influence your perception: "This layout has 20% more space than the last one," or "It's rare to find a unit like this in this location."

Here's the trick:

  • Focus on absolute value: Does this property truly meet your goals, or does it just feel better because it's been framed as "better than the rest"? If you are considering the unit because it offers better profit should you sell it in the future, just don't. Focus on the property in terms of its value that it can bring to your life.

  • Remind yourself: The best option doesn't always mean the right option for you.

"You're buying a home, not winning a competition."

3. Walk the neighbourhood, not just the property

A home isn't just about its interior - it's about the life you'll live there. Spending time in the neighbourhood can help you decide if it truly fits your lifestyle.

  • Visit the area during the day and at night.

  • Check noise levels, amenities, and traffic.

  • Ask yourself: Can I see myself living here every day, or does the property feel isolated once I step outside?

"A gorgeous home in a noisy neighbourhood can lose its appeal fast."

4. Leverage the Investment Suite advantage

Finding the perfect home can feel overwhelming - but it doesn't have to be. Through our exclusive Investment Suite, our agents are equipped to match you with a property that aligns perfectly with your lifestyle needs and budget.

Why? Because making an informed choice is easier when you have access to cutting-edge tools and expert insights. Our Investment Suite provides real-time data and detailed property analysis, ensuring you never have to settle for less than the best.

"Your perfect home isn't just a dream - it's a calculated, informed choice."

With the right support and insights, navigating the property market becomes seamless. Trust in the power of technology and expertise to find a home that truly fits you.

These psychological hacks won't stop your heart from skipping a beat at a beautiful home, but they'll ensure your brain is in the driver's seat too. In the end, your wallet - and your future self - will thank you for seizing the opportunity.

5. Act on it

Buying a property is a huge decision - so be ready to take the plunge when you know it's right. Once you've checked off all the boxes on your checklist, don't hesitate to move forward.

Why? Because when the perfect property comes along, waiting too long can mean missing out. That "must-buy" feeling isn't just excitement - it's your instincts and preparation aligning.

"If it's truly the one, you'll know, and it's better to act than to regret."

Why knowing your psychology helps you win

Buying a home is so much more than just a financial decision - it's a deeply emotional and psychological journey. From the nostalgia of childhood memories to the allure of showflat perfection, every little factor plays a role in shaping our choices.

But here's the good news: once you understand how these psychological triggers work, you're in control.

  • You can avoid getting swept up by FOMO or the magic of beautifully staged showflats.

  • You can separate what you need from what just feels exciting in the moment.

  • Most importantly, you can make decisions that truly serve you, not just your emotions or social pressures.

Your dream home doesn't have to match anyone else's; neither do you have to succumb to societal pressure. It doesn't have to look like an Instagram post or tick all the boxes your friends rave about. It just needs to fit your life, your goals, and your future.

So the next time you're house-hunting, take a deep breath, remember these insights, and ask yourself: Am I buying this home for me, or for the story I'm telling myself?

Because at the end of the day, the best home is the one that makes you happiest.

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position.

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