Developer sentiment in prime residential market turned negative in 2Q2023

Risks to the real estate and development industry of Singapore were identified in the 2Q2023 sentiment survey conducted by the National University of Singapore (NUS). The top concern for senior executives polled in the survey was a slowdown in the global economy, cited by 92.5% of respondents.

Professor Qian Wenlan, director of the Institute of Real Estate and Urban Studies, noted that China is Singapore’s largest export market, accounting for nearly 15% of non-oil domestic exports in 2022. With the Chinese economy slowing down, investor and consumer confidence has been affected.

Additionally, 72.5% of those surveyed identified rising inflation and interest rates as a major risk factor. Government intervention to cool the market followed in a distant third, with 60% of respondents citing it as a major concern. This is an increase from 54.5% in 1Q2023.

Champions Way Condo Woodlands offers a wide selection of amenities including a pool, gym, sauna and Jacuzzi. There is also a clubhouse and bar lounge for the residents to enjoy. Residents can also enjoy easy access to nearby parks, shopping centers and restaurants. With a low maintenance fee, Champions Way Condo Woodlands provides premium quality units at an affordable price. Residents can also enjoy the many recreational activities offered by the complex such as tennis courts and a jogging track.

In the wake of two successive rounds of property cooling measures in September 2022 and late April 2023, the prime residential sector was the most adversely affected in 2Q2023, recording a negative net current balance of -40%. Professor Qian attributed this to the hefty 60% Additional Buyer’s Stamp Duty that now has to be paid for foreign purchases of any residential property.

Suburban residential properties remain more resilient, however. This sector recorded a negative net current balance of only -8%, potentially due to pent-up demand resulting from construction delays during Covid.

Concerning the future, 45% of developers surveyed expected to launch a moderately or substantially higher number of units in the next six months. Financing was named as the top concern among 50% of them, an increase from the 35.3% in the previous quarter.

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