Real estate firms turn positive on prime residential sector, remain optimistic about suburban housing: Survey
04:45 AM Nov 02, 2012
SINGAPORE - Sentiment among property developers improved in the third quarter compared to the previous three months, with a higher proportion planning to launch substantially more homes for sale in the next six months, according to the results of the Real Estate Sentiment Index (RESI) survey released yesterday.
The survey, carried out by the Real Estate Developers Association of Singapore (REDAS) and the National University of Singapore (NUS), showed that the Composite Sentiment Index, the indicator for the overall real estate market, stood at 4.9 in the third quarter compared to 4.7 in the second.
Associate Professor Sing Tien Foo at the NUS Department of Real Estate said: "Developers are in general upbeat about the current outlook of the property markets. However, they remain alert of possible macro and policy risks that could destabilise the market in the next six months."
The survey showed developers continued to be most confident about the hotel/serviced apartment sector. They turned positive on the prime residential sector and remained optimistic about suburban housing, although less so.
Some 23 per cent of developers surveyed planned to launch substantially more homes for sale over the next six months, up from 13 per cent in the last quarter. Forty-eight per cent expected moderately more units to be launched in the near term, compared to 46 per cent in the previous quarter.
Meanwhile, most developers (58 per cent) expected home prices to stay steady, but this was down from 65 per cent previously. More developers - about 32 per cent - showed increased interest in Government Land Sales, up from 3 per cent previously, while 22 per cent expect greater interest in en bloc sales over the next six months, up from 9 per cent previously.
A majority of the respondents (67 per cent) felt the US Federal Reserve's third round of quantitative easing will increase fund flows into the real estate investment trust market here.
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