Developers expect higher home unit prices—here's why

This sentiment was revealed in the Real Estate Sentiment Index survey.

About seven in 10 home developers are seeing unit prices of new launches in the next six months of 2022 to be “moderately or substantially higher,” according to the recent Real Estate Sentiment Index (RESI).

The survey, made public by the National University of Singapore, discovered that close to 95% of the home developers said rising inflation or interest rates and the rising cost of construction materials as the top risks that may impact market sentiments over the next six months.

Meanwhile, 24% expect the prices of new launches to remain at the same price whilst 5% said prices will be lower.

As for the count of new residential units, 65% of home developers said they see moderately more units to be launched in the next six months whilst 15% of developers expected a moderately lower number of units.

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National University of Singapore

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