New launches in Singapore in the next six months may lead to an oversupply in the property market, according to some Real Estate Sentiment Index (RESI) participants.
When asked if they foresee any potential risks that may adversely impact market sentiment in the next six months, 65.6 percent of the respondents surveyed in Q3 2014 indicated the property market will “face excessive supply from new launches”.
One participant said, “Currently, there are too many unsold projects whereby buyers have been restricted on their purchases due to the policy measures. “
More than 67 percent of those surveyed expect the slowing down in the global economy, rising inflation, and interest rates will adversely impact market sentiment in the next six months.
Rising cost of construction also remains as one of the potential risks that will adversely impact the market sentiment.
“Policy measures on foreign workers and heavy stamp duties have affected the sentiments and demand badly. This is amid a deteriorating impact in the Asia Pacific Region,” a respondent observed.
RESI is jointly developed by the Real Estate Developers’ Association of Singapore (REDAS) and the Department of Real Estate (DRE), National University of Singapore.
The quarterly structured questionnaire survey is conducted among senior executives of REDAS member firms, and measures the perceptions and expectations of real estate development and market conditions in Singapore.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
