(10 Nov 2022, Singapore) The global and local economies are facing unfavourable factors such as a possible economic slowdown caused by interest rate hikes, which affects the confidence of property players. Although property players remain optimistic about the current situation, they have turned pessimistic about the outlook for the next six months.
The government’s new cooling measures has plunged property players’ outlook for suburban residential sector into the most pessimistic. However, given the inflow of foreign capital, they are more optimistic about the outlook for prime residential sectors.
The Real Estate Sentiment Index (RESI) released by the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) on Wednesday evening (9 Nov 2022) showed that the market is not as optimistic as before in the third quarter of this year. The Composite Sentiment Index, which reflects the overall real estate market, fell from 5.7 in the second quarter to 5.1 in the third quarter.
An index of more than 5 means the market sentiment is optimistic, while less than 5 means the market sentiment is deteriorating.
The Current Sentiment Index fell from 6.1 in the second quarter to 5.4 in the third quarter, indicating a slowdown in market sentiment. The Future Sentiment Index, which reflects the outlook for the next six months, also fell from 5.3 in the second quarter to 4.8 in the third quarter, indicating a shift from optimistic to pessimistic sentiment.