According to the latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS), property buying sentiment in Singapore has seen an upturn in 3Q2024. The index, which measures the overall sentiment of the private real estate market, is surveyed quarterly by NUS’s Department of Real Estate and IREUS.
The current sentiment index has risen from 4.8 in 2Q2024 to 5.9 in 3Q2024, with the future sentiment index also increasing from 5.1 to 5.8 in the same period. The composite sentiment index, which combines these two indices, has also grown to 5.9, surpassing the neutral score of 5 for the first time. This positive trend is attributed to a growing optimism in the market as a whole.
IREUS director Professor Qian Wenlan points to the recent US Federal Reserve rate cuts as a contributing factor to the positive sentiment. With more cuts expected in the future, it is anticipated that both credit availability and the cost of business will improve, leading to a higher market sentiment.
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Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, notes that the strong performance of suburban residential, hotel/service apartments, and suburban retail areas has also played a role in boosting overall market sentiment. Suburban residential and hotel/serviced apartments recorded the highest current net balances of +35%, followed by suburban retail at +26%. The outlook for these sectors is also positive, with suburban residential scoring +29% for future net balance and hotel/serviced apartments and suburban retail scoring +35% and +19%, respectively.
However, global economic uncertainty remains the top risk concern for developers, with 67.7% of respondents citing it as a potential risk. This is followed by job losses, a decline in the domestic economy, and an excessive supply of new property launches, both ranking at 41.9%. Despite these concerns, the overall positive sentiment in the market is a promising sign for the Singapore property market.