Business sentiment among Singapore property players improves in Q3 on rate declines

The current sentiment index rose to 5.9 from 4.8 in Q2.

Business sentiment amongst property players in Singapore further improved in Q3, driven by declining interest rates and expectations of better economic performance.

Data from the National University of Singapore (NUS) Real Estate Sentiment Index showed that the Current Sentiment Index improved to 5.9 from 4.8 in Q2.

The Composite Sentiment Index and Future Sentiment Index also rose, increasing from 4.9 to 5.9 and 5.1 to 5.8, respectively.

“Market sentiments remain largely stable and cautiously positive,” NUS reported.

Sector-wise, players said Hotels/Serviced Apartments (+35%) and Suburban Residential (+35%) led Q3 and will continue to perform well in the succeeding quarters.

Meanwhile, players remain concerned about a global economic slowdown (67.7%), job losses or domestic economic decline and excessive property launches (41.9%).

Some 38.7% raised concerns about rising construction costs and government cooling measures.

Other concerns were increased supply of development land (29%), tightening of financing or liquidity in the debt market (22.6%), risk of a real estate price bubble (9.7%), and rising inflation or interest rates (6.5%).