Overall property market sentiment among senior executives in Singapore’s real estate industry continued to improve in Q3 2012, according to the latest Real Estate Sentiment Index (RESI) survey conducted by the Real Estate Developers Association of Singapore (REDAS) and National University of Singapore (NUS).
The Current Sentiment Index stands at 5.1 in Q3, up from 4.9 in the previous quarter, the report noted.
Nevertheless, developers and industry players remain cautious on the market outlook for the next six months, with the Future Sentiment Index up slightly to 4.7 from 4.5 in Q2.
Meanwhile, the Composite Sentiment Index inched up to 4.9 on the back of opposing effects of low interest rates against the recent government policies and weak global economy.
In the next half year, the hotel/serviced apartment sector will likely be the stronger performer. The report also showed that 48 percent of developers plan to increase their private home launches, while the majority of respondents (58 percent) expect prices to remain unchanged. In addition, there has been growing interest for en bloc deals and the Government Land Sales (GLS) Programme.
At the same time, the majority (67 percent) of survey respondents expect the US government’s third round of quantitative easing (QE3) to increase fund flows into the REIT market. QE3 will also boost interest for the commercial/industrial segment, residential properties and land bidding.
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