Sunday, February 12, 2012

Developer sentiment weakens: poll

Business Times: Sat, Feb 11
DEVELOPERS' sentiments of the market have weakened compared to last quarter, particularly in the residential sector, in large part due to the impact of the Additional Buyers Stamp Duty (ABSD) introduced late last year.

According to the latest survey by the Real Estate Developers' Association of Singapore (Redas) and the National University of Singapore (NUS), the Current Sentiment Index - where respondents rate Singapore's real estate market conditions vis-?? -vis six months ago - slipped to 3.5 in Q4 from 3.6 in the previous quarter.

The index ranges from 0 to 10, with a score above 5 indicating improving market conditions.

The Future Sentiment Index - in which respondents rate overall property market conditions over the next six months - fell to 3.1 in Q4 from 3.4 in Q3. As a result, the Composite Sentiment Index slipped to 3.3 in Q4, from 3.5 the previous quarter.

Of the sectors, the residential sector is expected to perform the worst. Current and future net balance for the prime residential sector (difference between respondents who thought the sector would fare better versus those who thought it would fare worse) slid from -30 per cent and -48 per cent in Q3 to -67 per cent and -79 per cent respectively in Q4. Suburban residential's net balance of current and future performance is -26 per cent, and -57 per cent respectively.

The office sector too worsened from -16 per cent and -57 per cent previously, to -52 per cent and -67 per cent in Q4.

Prime and suburban retail sectors saw future net balances of -39 per cent and -19 per cent respectively; the business park/ high-tech space and industrial/ logistics sectors saw future net balances of -33 per cent and -35 per cent respectively.

Only the current net balance of the hotel/serviced apartment sector was in positive territory (+17 per cent); net balance of future performance is expected to be -8 per cent...

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Martin Koh/ Sherry Tang
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