Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection
Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection When it comes to luxury property investments, Singapore...
Read More
TLDR
A recent survey by the National University of Singapore (NUS) highlights increasing optimism among real estate industry leaders. The findings reveal a positive outlook for market growth, driven by factors such as economic recovery and favorable government policies. Industry experts express confidence in continued demand for residential and commercial properties, with a focus on sustainable development and technological advancements.
In the midst of the lively activity in the local real estate market, a recent survey shows a positive outlook as top executives from real estate companies anticipate a favorable upturn. The National University of Singapore’s Real Estate Sentiment Index (RESI) indicates that the first quarter of the year experienced an increase in both current and future sentiments, suggesting a possible recovery following a slow end to 2023. With a stable economy and positive macroeconomic indicators in the background, experts in the industry forecast a consistent growth path in the upcoming months.
The robust Singapore dollar has played a significant role in reducing inflation. In March, core inflation decreased from 3.6% to 3.1% year-on-year, while headline inflation dropped to 2.7% from February’s 3.4%.
One of the survey participants credited this positive trend to the financial stability of households and the low unemployment rate, which are expected to continue supporting demand and prices in the housing market.
The National University of Singapore (NUS) reported an impressive 8.9% increase in households’ net worth, reaching $2.80 trillion in 2023, with the unemployment rate holding steady at 2%. This aligns with the decrease in retrenchment rates in the first quarter of 2024.
The sentiment towards the local hotel and serviced apartment segment remains very positive among real estate industry leaders, followed by a relatively optimistic outlook on the suburban retail sector. However, respondents were less confident about the performance of the prime residential market.
Moreover, most respondents (73.5%) in the first quarter of 2024 survey identified a potential slowdown or decline in the global economy as the top risk that could negatively impact sentiments in the next six months. This marks a significant decrease from 90% in the previous quarter of 2023.
“A strong economic recovery is essential for the health of the property market. Concerns also exist regarding a possible oversupply of residential apartments, as the government has increased the supply of Government Land Sale (GLS) sites in recent quarters. The potential implementation of cooling measures is always a consideration,” emphasized a survey participant.
Approximately 29.4% of respondents expressed concerns about the increase in development land supply, up from 23.7% in the previous quarter.
Despite a slight decrease from the last quarter, job losses and a sluggish domestic economy maintained their position as the second biggest concern, with a worrying 55.9%. Inflation and interest rates, on the other hand, rose to 50.0% from 44.7% in 4Q2023.
Interestingly, government intervention in the market and the looming threat of a real estate price bubble were of the least concern, only registering at 11.8% and 2.9%, respectively.
Looking ahead, 22.2% of surveyed developers predict a moderate increase in unit prices for new launches in the next six months, a significant drop from 42.9% in 4Q2023. Conversely, a majority of 72.2% anticipate prices to remain stable, a stark increase from 47.6% in the previous quarter.
Only a small percentage (5.6%) foresees a decrease in unit prices.
Commenting on the situation, one respondent highlights the growing resistance of home buyers to exorbitant price points, resulting in more selective and cautious decisions. While developers may resort to delicate pricing strategies, drastic price drops are unlikely due to existing commitments to land and development costs. The overall demand and prices are expected to be supported by healthy household finances and a low unemployment rate.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Are You Considering Paying Off Your Mortgage Loan Ahead of Time? Is It the Right Financial Move?
TLDR When considering mortgage options in Singapore, it's essential to understand the differences between HDB loans and bank loans. HDB...
Read More
Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!
TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...
Read More
A Beginner’s Guide to Homebuying: How to Choose the Perfect Property
TLDR When considering property investments, understanding your motives is crucial. Factors like accessibility to amenities, remaining lease, transaction history, rentability,...
Read More
5 Most Affordable Areas to Invest in Property in Singapore
Singapore is known for being one of the most expensive cities in the world, particularly when it comes to property...
Read More
An Essential Guide to Buying a Home in Singapore 2023
TLDR When navigating the complexities of purchasing a property in Singapore, ensure you meet eligibility criteria, consider affordability factors, and...
Read More
Should Foreign Buyers Be Deterred By the 30% ABSD?
TLDR Foreign buyers interested in private residential properties in Singapore is a common sight due to the country's positive reputation...
Read More
Four Things to Avoid When Renting Out an HDB Flat
TLDR Renting out an HDB flat in Singapore can be a lucrative source of secondary income. Key considerations include adhering...
Read More
Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?
TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...
Read More
How to Maximise Your Home Value Before Selling : 6 Simple Steps
TLDR When looking to sell your home, consider simple ways to boost its value without costly renovations. Organize living spaces,...
Read More
Why Can’t Everyone Have Homes In Good Locations?
TLDR In a nutshell, the Singapore property market is undergoing significant changes, with the introduction of a new housing classification...
Read More
Should You Purchase a Small Landed Home or a Larger Condo? Insights from Singaporeans
TLDR When deciding between a compact landed house and a spacious condominium, consider key factors like security, parking, maintenance costs,...
Read More
Should I Move to a Private Property?
TLDR When considering an upgrade from HDB to private property in Singapore, it's essential to understand the differences and implications....
Read More
How To Avoid Top 5 Common Investment Pitfalls When Investing In Singapore Property
When investing in Singapore's property market, it is crucial to be aware of the common pitfalls that can lead to...
Read More
Is Lentor Mansion: The 5th New Lentor Condo in 2 Years Still Worth Your Attention?
TLDR for "Exciting Updates from Lentor Mansion" Lentor Mansion, a new project in the vibrant Lentor region, is set to...
Read More
Why Property Investing is the Key to Early Retirement in Singapore
Investing in property is a popular way to build wealth and achieve financial freedom in Singapore. With the right strategies...
Read More
5 Key Insights to Take Away from the Latest 2022 Cooling Measures
TLDR Affordability of HDB Market: Government is focused on ensuring affordable public housing and may increase supply if needed. Long-term...
Read More
The 5 Most Popular Types of Properties to Buy in Singapore
The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
5 Points : Singapore’s Property Market vs. Stock Market: Which is the Better Investment Option?
Investing is an important aspect of personal finance and can be a valuable way to grow wealth over time. However,...
Read More
The Impact of a Real Estate Agent on Your Property’s Selling Price
TLDR In the world of real estate, the value of property agents lies in their ability to create competition among...
Read More
