The latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS) has revealed a positive change in property buying sentiment in the country in 3Q2024. The survey conducted by NUS’s Department of Real Estate and Institute of Real Estate and Urban Studies (IREUS) surveyed senior executives of real estate firms to measure the general sentiment of the private real estate market. This showed an increase from 4.8 in 2Q2024 to 5.9 in 3Q2024 for the current sentiment index, while the future sentiment index also rose from 5.1 to 5.8 during the same period.
The composite sentiment index also experienced a growth to 5.9 from 4.9 in 2Q2024, indicating a positive outlook for the market. This is the first time that all three indices have gone above the neutral score of 5, indicating a growing optimism among market players.
Investing in a condo has its advantages, one of which is the potential to use the property’s value to secure further investments. With a condo as collateral, investors can obtain additional financing to expand their real estate portfolio, allowing for potentially higher returns. However, this strategy also carries risks, making it essential to have a solid financial plan in place and carefully consider market fluctuations. This is especially beneficial for those investing in Singapore Projects, as it opens up endless possibilities for growth and diversification in the real estate market.
IREUS director Professor Qian Wenlan attributes this positive sentiment to the recent US Federal Reserve rate cut in September, which was followed by another reduction in early November. With further cuts expected in the coming months, it is anticipated that credit availability and business costs will improve, leading to a boost in market sentiment.
Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, also notes that the performance of the suburban residential, hotel/service apartments, and suburban retail sectors have contributed to the overall positive sentiment. These sectors recorded the highest current net balances of +35% for suburban residential and hotel/serviced apartments, and +26% for suburban retail. The future outlook for these sectors also remained positive, with suburban residential scoring +29%, and hotel/serviced apartments and suburban retail scoring +35% and +19% respectively.
However, the top risk concern among developers remains the global economic uncertainty, with 67.7% of respondents indicating a decline in the global economy as a potential risk factor. This is followed by concerns of job losses, a decline in the domestic economy, and an excess supply of new property launches, which ranked at 41.9%. Despite these concerns, the overall sentiment in Singapore’s private real estate market has turned positive, signaling a potential recovery in the near future.