More developers think that private condo prices will fall

There was a reversal of market sentiment among Singapore home builders after the new property cooling measures were introduced on 6 July, reported the Business Times.

In fact, the Real Estate Sentiment Index (RESI) compiled by the National University of Singapore (NUS) and the Real Estate

Notably, RESI denotes overall market sentiment. A score above 5.0 signifies improving market conditions, while a figure below that indicate worsening conditions.

RESI is made up of the Current Sentiment Index and Future Sentiment Index, which respectively fell from 6.7 to 3.9 and 6.4 to 4.0. The latter gauges developers’ perception of market conditions in the last six months, while the other assesses their outlook over the next six months.

Despite after the imposition of the new curbs, 65 percent of respondents still expect more new launches, but this is down from 87.9 percent during the second quarter.

Furthermore, just 3.0 percent of respondents thought that prices of new private condos will fall in the second quarter, but after the new property curbs took effect, 48.6 percent now believe that prices will decline.

The Government announced on Thursday (Jul 5) that it is raising Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to- value (LTV) limits on residential property purchases.

Ref : Property Report