The Real Estate Developers’ Association of Singapore (REDAS) is developing a relationship with property stock analysts, due to concerns following the weakening market sentiment and potential over-supply in the private residential sector throughout Singapore.
According to The Business Times, REDAS confirmed its discussion with property market analysts and consultants on 1 August, which could signal the start of frequent meetings between both parties. The informal gathering was attended by five consultants and 17 analysts from 14 brokerage houses.
Those present discussed “possible ways to facilitate sharing of information among industry stakeholders, the need to better understand and analyse new market dynamics and the changing nature of the demand for Singapore residential properties,” commented REDAS.
The industry body has suggested in-house data sharing to aid analysts in their market research.
The gathering took place after REDAS shared data from the recent REDAS-NUS Real Estate Sentiment Index survey, which polled consultants, developers and other REDAS members. The findings indicated weakening market sentiment in Q2.
On 28 July, Bank of America predicted “an inflection point in 2012, driven by excess supply, demand moderation and slowing economic growth.”
Its analysts predict that approximately 12,500 new homes will enter the market each year from 2011 to 2015. Similarly, stricter immigration policies and more HDB flats are expected to weaken the demand for private homes.
Citi property analysts are among those who do not expect an oversupply of private homes, as their June report shows.
In June, National Development Minister Khaw Boon Wan advised upgraders and investors to be cautious about buying a property, given the current global conditions.
REDAS President Wong Heang Fine commented that he would like the sessions to be regular — every six months.
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