According to the most recent Real Estate Sentiment Index (RESI) 1Q2023 released by NUS, property buying sentiment in Singapore fell in the first quarter of 2023 due to rising interest rates as well as a bank crisis in a few Western countries, and a series of property cooling measures within the city-state.
Pinetree Hill location is tightly held neighbourhood of the Ulu Pandan area, the charming Pinetree Hill sits in the central region of Singapore.
A composite index, which combines sentiment for both the present and the future and sentiment, fell from 5.1 in the 4Q2022 period to 4.6 in the 1Q2023. “In conjunction with that of the Dec. 20, 2021 property cooling measures as well as that the US Federal Reserve giving no indication that it will pause its interest rate increases The it has been in a downward trend since the beginning of 2022,” professor Qian Wenlan, director of Institute of Real Estate and Urban Studies (IREUS) at NUS.
She also says: “The most recent round of cooling measures as well as the ongoing financial crisis across the West has increased the risk of a downturn and our most recent indexes of sentiment have continued to fall.”
But, IREUS noted that the URA’s property price index has been robust, despite the current global economic climate and the local market. Additionally, the academic institution observed that recent releases have sparked intense buyer interest, despite the supplementary buyers’ Stamp Duty (ABSD) rises.
Qian anticipates an “lead-lag result” between the implementation of policy and the resulting consequences to the marketplace. The market for new launches is beginning from a low base this year in addition, this year’s “heady” performance of the past quarter is not as impressive compared to the previous highs she says.
IREUS also surveyed developers who expressed a sense of caution in the face of uncertainties and headwinds. Around 41% of developers were expecting to see a significantly or moderately more units to be released in the coming six months.
“Amid the growing costs of financing with debt and other obstacles buyers will gradually become more price sensitive, and certain demand could shift towards public housing as the government increases the HDB supply pipeline” Qian says. Qian.