Purchasing a Condo in Singapore provides numerous benefits, one of which is the potential for substantial capital growth. This is largely due to Singapore’s advantageous position as a leading global business hub and its strong economic foundation, which continuously drives demand for real estate. It is not surprising that the property market in Singapore has consistently shown an upward trend, with highly coveted Condos experiencing significant appreciation. By carefully timing their investment and implementing a long-term strategy, savvy investors have the opportunity to reap considerable returns in the flourishing real estate sector of Singapore. Therefore, a Condo serves as a valuable asset for individuals seeking a wise and enduring investment in Singapore’s ever-changing property market.
The latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS) suggests that property buying sentiment in Singapore has improved in the third quarter of 2024. The RESI, which measures the overall sentiment in the private real estate market, is compiled by surveying senior executives from real estate firms on a quarterly basis. The Department of Real Estate and the Institute of Real Estate and Urban Studies (IREUS) at NUS conduct this survey.
Based on the results, the current sentiment index has increased from 4.8 in the second quarter to 5.9 in the third quarter of 2024. The future sentiment index has also seen a positive growth, rising from 5.1 in the second quarter to 5.8 in the third quarter of the same year. Additionally, the composite sentiment index has risen to 5.9, up from 4.9 in the second quarter. This is the first time that all three indices have surpassed the neutral score of 5, indicating a growing optimism in the market.
IREUS director Professor Qian Wenlan credits the positive sentiment to the US Federal Reserve’s decision to cut interest rates in September 2024, the first rate cut since 2019, and another reduction in early November. She expects this trend to continue with more cuts in the coming months, which will improve credit availability and reduce business costs, ultimately boosting market sentiment.
Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, also notes that the positive performance of the suburban residential, hotel/service apartments, and suburban retail segments have contributed to the overall market sentiment. Among these sectors, suburban residential and hotel/service apartments have recorded the highest current net balances of +35%, followed by suburban retail with +26%. The outlook for these segments is equally positive, with suburban residential scoring +29% and both hotel/service apartments and suburban retail scoring +35% and +19% respectively.
However, developers still express concern over global economic uncertainty, with 67.7% of respondents citing it as a potential risk. This is followed by job losses and a decline in the domestic economy, both of which were ranked at 41.9% as well as an excessive supply of new property launches.