Developers Optimistic On Positive Market But Worry Possible Govt Intervention

Upcoming launch Parc Botannia in Fernvale

Home builders here are becoming more bullish, however they fear that the improving economy conditions would lead to more property curbs in the government, ” reported the Straits Times.

In reality, the Real Estate Sentiment Indicator (RESI) reveal that property builders’ general belief has improved. They also have greater perspectives on the prevailing position in addition to future prospects.

That is because, the composite indicator, which indicates total opinion, rose to 6.6 from Q3 2017 from 6.1 from the previous quarter. At the exact same time, the current sentiment index climbed to 6.5 from 6.1, although the upcoming sentiment index rose to 6.7 from 6.2 previously.

Professor remark

“The large sentiment scores indicate that a strong and broad-based recovery particularly in the office and residential real estate markets,” stated Associate Professor Sing Tien Foo in the Department of Real Estate/Institute of Real Estate Studies in NUS.

“The positive thoughts in the next quarter were consistent with gains in recent home trades and en bloc sales actions on the marketplace.” And most developers are rushing to launch the existing land plot they have, as the en-bloc owners (cash rich) would have to find a new home soon. The next coming launches like Twin Vew Condo at West Coast Vale by China Construction, Margaret drive by MCL and UOL Amber road will be the limelight for the En-bloc owners.

More Curbs coming?

But, Sing noticed that home builders are concerned that the authorities could introduce more land cooling steps if residential costs grow significantly from the economy.

Their study also found that programmers are more worried about supply-related variables like new territory, new project launches and speculative actions.

Specifically, 50.8 percent of the respondents think that increasing interest rates pose the most important risk to local land industry during the next six months, whereas 57.4 percent believe that it is a recession in the worldwide market.

36.1 percent also termed a downturn in Singapore’s market for a risk factor, whereas 34.4 percent are concerned about the oversupply of new land launches here.

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