Singapore - Property Market Sentiment Improves For Q2 2012
August 13, 2012
The National University of Singapore (NUS) and the Real Estate Developers' Association of Singapore (REDAS) found improved sentiment for Singapore's property market.
Market players are slightly more upbeat about Singapore's property market in Q2 2012, said NUS and REDAS in their latest Real Estate Sentiment Index (RESI) survey.
The marginal improvement took the form of a slight advance in the Composite Sentiment Index of 0.1 point - creeping up to 4.7 for the quarter from 4.6 in the previous quarter. The Composite Sentiment Index measures overall sentiment in the real estate market.
Also improving was the Current Sentiment Index which moved up to 4.9 in Q2 from 4.8 in Q1, showing that survey respondents held more favourable views of the property market now than during six months ago.
In addition, the Future Sentiment Index also made a slight advance to 4.5 from 4.4 in Q1. The Future Sentiment Index measures respondents' views of the real estate market in the upcoming six months.
The survey results were composed from responses collated from about 70 senior executives from REDAS member-firms, with property developers making up a large majority.
Respondents also listed global economic slowdown, oversupply of new launches and oversupply of new development land as the top three potential risks facing Singapore's property market.
Market players also expect that fewer developers would increase launches of residential projects in the coming months. The majority of respondents also felt that prices will stay stable.
The overall sentiment is one of caution, but respondents had varying views for different sectors. Hotel properties inspired the most confidence with a positive sentiment of 33%, making the sub-market the clear favourite. Meanwhile, the office sector received a negative 31% sentiment from respondents.
Tags: Business space, Commercial real estate, Income properties