Your search results

NUS Real Estate Survey Reveals Growing Optimism Among Industry Leaders

Posted by Jayson Ang on January 17, 2025

| 0

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 …

All Blog Posts Buying Tips Opinion

Does Sell 1 Buy 2 Strategy Still Works Today in 2024?

Jayson Ang – June 28, 2023 –

TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...

All Buying Tips Opinion Selling Tips

Should You Buy An Older Resale HDB Flat If You Are In Your 20s/30s?

Jayson Ang – August 26, 2025 –

TLDR Younger Singaporeans are increasingly drawn to older resale HDB flats due to their larger size and central locations, without...

Mandarin Top 5

5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment

Jayson Ang – June 6, 2024 –

Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...

Mandarin Top 5

Top 5 Sushi Restaurants in Singapore

Jayson Ang – May 2, 2024 –

Singapore, a melting pot of cultures and culinary delights, is known for its diverse and vibrant food scene. Among the...

All Buying Tips Opinion Selling Tips

Timing the Market: Lessons from Singapore’s Property Price Fluctuations

Jayson Ang – December 18, 2025 –

TLDR Singapore’s property market has seen price declines during major crises such as the 1985-1989 pre-recession, 1996-1998 Asian Financial Crisis,...

Buying Tips Mandarin Top 5

5 Hidden Expenses to Watch Out for When Buying a Home in Singapore

Jayson Ang – July 2, 2023 –

5 Hidden Expenses to Watch Out for When Buying a Home in Singapore Buying a property in Singapore can be...

All Buying Tips

How to Avoid Forfeiting Your Security Deposit: A Guide to Your Rental Property

Jayson Ang – July 30, 2023 –

TLDR When bidding farewell to your rented property, ensure the safe return of your security deposit by: Regular Aircon Servicing:...

Mandarin Top 5

Top 5 : Most Profitable Neighborhoods To Invest In For Singapore Property Investment 2025

Jayson Ang – April 30, 2025 –

As the global economy continues to recover, the real estate market in Singapore remains a promising investment opportunity for savvy...

Mandarin Top 5

Top 5 : Reasons why Freehold Properties Cost More in Singapore

Jayson Ang – February 21, 2025 –

Freehold properties, a term often heard in the real estate market, are properties that are "free from hold" of any...

All Blog Posts Buying Tips

Explore the Benefits and Drawbacks of Holding an Open House!

Jayson Ang – June 3, 2023 –

TLDR An open house is a valuable opportunity for sellers to showcase their home to potential buyers without pressure. It...

All Blog Posts Buying Tips

Five Pitfalls of Selling a Home for the First Time

Jayson Ang – July 23, 2023 –

TLDR When selling your first home, avoid holding out for a better offer as it may backfire. Let your agent...

Mandarin Top 5

Top 5 : Benefits of Investing in Older vs. Newer Singapore Property Market Condos for International Buyers?

Jayson Ang – January 14, 2025 –

Singapore's property market has long been an attractive investment destination for international buyers, offering a stable and well-regulated environment with...