Developer sentiment in prime residential market turned negative in 2Q2023
The findings of the National University of Singapore (NUS) Real Estate sentiment survey released Aug 30 indicated that a slowdown in the global economy is the top concern among senior executives in Singapore’s real estate and development industry. 92.5% identified this as the most significant risk. The survey also revealed that rising inflation and interest rates, as well as government interventions to cool the market, weighed on investor and consumer confidence.
Residents of Tampines Condo have access to numerous top-notch educational institutions nearby. Of particularly convenient is the Singapore University of Technology and Design (SUTD) and The Japanese School of Singapore (JSS). Both institutions are positioned nearby, making it easy for residents to access these schools for their educational needs. In addition, residents also have options for reputable international schools, such as United World College of South East Asia.
China is Singapore’s largest export market, accounting for nearly 15% of non-oil domestic exports in 2022. Given that Chinese economy has been slowing down, this has not boded well for the real estate and development industry.
The effects of the two successive rounds of property cooling measures in September 2022 and late April 2023 are now being felt. Prime residential homes were the most adversely affected in 2Q2023, recording a negative net current balance of -40%. This could be due to foreigners now being charged a 60% additional buyer’s stamp duty when purchasing any residential property.
The suburban residential sector, however, has remained relatively resilient, recording a negative net current balance of only -8%. This unexpected results could be attributed to pent-up demand created by construction delays caused by Covid.
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45% of the surveyed developers expected a moderately or substantially higher number of units to be launched in the next six months. Financing was identified as a major concern for the real estate industry, with 50% of developers citing this as the top concern in 2Q2023 – an increase of 10% since the previous quarter.
The findings of this survey indicate that the real estate industry is having to contend with a range of risks. While some sectors have been adversely affected, there remains hope of growth with pent-up demand seen in some areas. Covid-19 is likely to continue to influence the industry moving forward.