Real estate survey shows sentiment of developers improving

Property developers sentiment showed moderate improvement in the third quarter compared to the previous quarter.

This is according to the REDAS-NUS Real Estate Sentiment Index (RESI) Survey for the third quarter of this year.

The Composite Sentiment Index, the indicator for overall real estate market sentiment in Singapore, stood at 4.9 in Q3 compared to 4.7 in Q2.

The current sentiment index stood at 5.1 in Q3, up from 4.9 in Q2 while Future Sentiment Index improved slightly to 4.7 from 4.5 over the same period.

The improved sentiment led to some 23 percent of developers saying that they plan to launch substantially more units over the next six months, up from 13 percent in the last quarter.

Meanwhile, a larger proportion of 48 percent expect moderately more units to be launched in the near term, compared to 46 percent in Q2.

More developers are also showing greater interest in Government Land Sales and en-bloc sale sites.

The survey also showed that respondents are cautious in assessing the market sentiment over the next six months.

But the majority of them expects the quantitative easing or QE3 to increase fund flows into the REIT market.

Out of the various property sectors, the index showed that developers are most upbeat on the hotel/serviced apartment sector.

Source : Channel NewsAsia – 1 Nov 2012

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