Since the index was launched in Q1 2010, the Real Estate Sentiment Index (RESI) hitting a record high. Thanks for that, many Singapore developers have become more positive about the state of the property market and there are many new condominiums is launching in 2018.
In Q4, 2017, overall sentiment was 6.9 and during the first quarter of this year, it increases to 7.1. Over the same period, the Current Sentiment Index rose from 6.9 to 7.2, while the increase of Future Sentiment Index is from 6.9 to 7.0. A score above five indicates improving market conditions, while a lower score denotes deteriorating conditions.
Professor Sing Tien Foo of the Department of Real Estate at the National University of Singapore (NUS) said: "“The real estate market sentiment has been at the all-time high after showing 10 consecutive quarters of increases since Q4 2015,”
“The improvements in the performance were broad-based and found in all sectors of the property markets. Prime and suburban residential markets showed the most robust performance in Q1 2018 supported by the strong take up in new launches.” The performance in Q1, 2018 is great and that is the strong advantage for Singapore developers developed their new launches.
Additionally, there is a slow improvement in market sentiment appears quarter-on-quarter. Over the next six months, 88.2 percent of the developers forecasted that the home prices will be increased. For the whole of 2018, about 64.7 percent forecasting a boost of between 5.0 and 8.0 percent.
Moreover, 26.5 percent of them plan to significantly increase their new launches in the next six months, while 55.9 percent intend to moderately increase their roll out of units.
On the other hand, the percentage of experts who forecasted the prices remain unchanged and the prices may fall are equal, 5.9 percent while 14.7 percent said they would maintain their launches at the same level.
Furthermore, despite the hike in development charges, 65.1 percent of the respondents believe that the collective sales will be decreased significantly. It is unlikely to occur over the next six to nine months. Due to the forecast of these experts, Singapore developers may feel that is the good signal for them to launch new condominiums.
The data is derived from questionnaires conducted among senior executives of Redas members. RESI is jointly developed by the Real Estate Developers’ Association of Singapore (Redas) and the Department of Real Estate at NUS.
The index is increased and that shows the Singapore's real estate market is "warm up". Therefore, many new condominiums projects are launched, attracted more investors as well as clients. In many amazing new launching condo, Sixteen 35 Residences @ Geylang Lor 35 and Parkwood Residences @ Yio Chu Kang Road is noticeable because of their strategic location and surrounded area.
Adapted from PropertyGuru, April 24, 2018