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 …

Mandarin Top 5

5 Impacts Of The Singapore Government’s Cooling Measures On Property Investing

Jayson Ang – May 30, 2024 –

The Singapore government has implemented several cooling measures over the years to regulate the property market and prevent it from...

All Selling Tips

Why Home Staging Is Important In A Competitive Real Estate Market

Jayson Ang – May 7, 2024 –

Singapore's property scene has always been a powerhouse, effortlessly combining the new with the old. It's a real estate playground...

Mandarin Top 5

Top 5 Luxury Dining Experiences in Singapore

Jayson Ang – July 8, 2024 –

Singapore, known as the Lion City, is a melting pot of cultures, cuisines, and luxury experiences. With its rich history,...

All Blog Posts Buying Tips

Buying HDB Resale : How to Minimise COV

Jayson Ang – January 20, 2023 –

TLDR Understanding Cash Over Valuation (COV) is crucial when buying a resale HDB flat in Singapore. COV is the additional...

All Blog Posts Opinion

Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?

Jayson Ang – December 9, 2022 –

TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...

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

Top 5 Coffee Shops in Singapore for Coffee Lovers

Jayson Ang – August 17, 2024 –

Singapore, a bustling city-state known for its diverse culture and vibrant food scene, has also become a haven for coffee...

All Blog Posts Buying Tips

35 Brand New Condominiums Nearing Their ABSD Deadline 2023

Jayson Ang – March 4, 2023 –

TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...

All Blog Posts Buying Tips

Should I Buy In A Newly MOP HDB Or An Older Resale HDB?

Jayson Ang – March 18, 2023 –

TLDR When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come...

All Blog Posts Opinion

When Should You Consider a Shorter/Longer Home Tenure?

Jayson Ang – May 8, 2023 –

TLDR Understanding the benefits of long-term home loans is crucial for financially conservative individuals in Singapore. Opting for a longer...

Mandarin Top 5

Top 5 : Best Hidden Beaches in Singapore

Jayson Ang – November 27, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...

All Buying Tips

Buying a Mega Development Condo? Here are 5 Overlooked Issues You Should Know

Jayson Ang – April 20, 2024 –

TLDR In the world of mega-developments, living in a large condo with over 700 units can bring challenges like ongoing...

All Blog Posts Opinion

Discover 7 Reasons to Sell and Right-Size Your Property

Jayson Ang – April 9, 2023 –

TLDR The increasing trend of right-sizing properties in Singapore is driven by various factors such as lifestyle changes, financial gains,...

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...

All Blog Posts Buying Tips Opinion

Methods to Beat ABSD and Own Multiple Properties in 2024 (Updated)

Jayson Ang – November 19, 2024 –

TLDR Navigating the Additional Buyers Stamp Duty (ABSD) in Singapore can be daunting for property investors. To save on ABSD...

Mandarin Top 5

5 Most Common Property Investment Scams To Watch Out For In Singapore

Jayson Ang – June 12, 2024 –

Property investment scams are unfortunately prevalent in Singapore, and unsuspecting investors can fall victim to these scams, leading to significant...

All Blog Posts Buying Tips

Buying a Second Property – 3 Key Factors to Consider

Jayson Ang – June 18, 2023 –

TLDR When navigating the complexities of purchasing a second property in Singapore, ensure you meet eligibility criteria, consider affordability factors...