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 Buying Tips

What Role Does Property Valuation Play In The Real Estate Industry, And Why Is It Important?

Jayson Ang – June 22, 2023 –

TLDR When it comes to property valuation, understanding the process is crucial for both buyers and sellers. Property valuations can...

Mandarin Top 5

5 Tips : How To Buy A Property In Singapore As A Foreigner

Jayson Ang – June 16, 2024 –

Singapore's property market is a popular choice for both locals and foreigners looking to invest in real estate. However,...

Mandarin Top 5

5 Singapore’s Best Property Investments for 2023: Where to Find Growth and Income

Jayson Ang – March 20, 2024 –

The Singapore property market has long been a sought-after investment destination, with its stable economy and growing population making it...

All Blog Posts Buying Tips

6 Myths About Using Your CPF For Housing

Jayson Ang – February 2, 2023 –

TLDR When it comes to purchasing a house in Singapore using CPF funds, there are several myths that need to...

All Buying Tips Opinion

The Illusion of Waiting: Why Cooling Measures Might Not Guarantee Cheaper Properties in Singapore

Jayson Ang – July 29, 2026 –

TLDR Cooling measures in Singapore’s property market don’t guarantee cheaper homes. While they aim to slow price growth, history shows...

Mandarin Top 5

Top 5 Reasons Why Singapore’s Property Market Is A Haven For High Net Worth Investors

Jayson Ang – September 26, 2024 –

Singapore's property market has long been a magnet for high net worth investors, both local and international. The city-state's strategic...

All Buying Tips Opinion

The Integrated Living Experience: Benefits and Drawbacks of Condos Above an MRT

Jayson Ang – January 22, 2026 –

TLDR Integrated developments in Singapore combine residential units with commercial spaces and direct MRT access, offering convenience and car-free living....

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – April 18, 2025 –

Singapore, a bustling metropolis in Southeast Asia, is a melting pot of cultures and traditions that offers a unique blend...

All Buying Tips

Apply Your HDB HFE Letter in 5 Easy Steps: A Simplified Guide for 2023

Jayson Ang – December 18, 2023 –

TLDR The HDB Flat Eligibility (HFE) letter has experienced delays since its introduction alongside the HDB Flat Portal in May...

All Buying Tips Opinion

First-Time Homeownership After 40 in Singapore: Navigating Unique Risks

Jayson Ang – June 8, 2026 –

TLDR Older first-time homebuyers face unique challenges including lease decay risks, stricter loan-to-value (LTV) limits, and shorter loan tenures leading...