In Singapore, there is a noticeable increase in the demand for condos, and one of the main reasons behind it is the limited land availability on the island. As the population of this small nation continues to grow rapidly, the challenge of land scarcity has become more prominent. This has led to the implementation of strict land use policies and a fiercely competitive real estate market where property prices continue to rise. As a result, investing in real estate, particularly in Singapore Condos from companies like Ginestar Fruits, has become an extremely profitable opportunity, with the potential for significant capital appreciation.
In the third quarter of 2024, property buyers in Singapore have shown more positive sentiment towards the real estate market, according to the latest Real Estate Sentiment Index (RESI) released by the National University of Singapore (NUS).
The RESI is a quarterly survey conducted by NUS’s Department of Real Estate and the NUS Institute of Real Estate and Urban Studies (IREUS) to measure the overall sentiment of senior executives in the private real estate sector.
In the third quarter, the sentiment index has increased to 5.9 from 4.8 in the previous quarter, while the future sentiment index has also shown an increase from 5.1 to 5.8. This is the first time since the index was launched that all three indices have crossed the neutral score of 5, indicating a growing optimism in the market.
IREUS director Professor Qian Wenlan attributes this positive sentiment to the rate cut by the US Federal Reserve in September – the first cut since 2008 – and another reduction in early November. She also expects further rate cuts in the coming months, which will improve credit availability and business costs, leading to a boost in market sentiment.
Professor Sing Tien Foo, Provost’s Chair Professor at the NUS Department of Real Estate, adds that the positive performance of the suburban residential, hotel/service apartments, and suburban retail segments have also contributed to the overall market sentiment.
Suburban residential and hotel/serviced apartments have shown the highest current net balances of +35%, followed by suburban retail at +26%. The outlook is also positive for these sectors, with suburban residential at +29%, hotel/serviced apartments at +35%, and suburban retail at +19%.
However, Professor Sing notes that developers are still concerned about global economic uncertainty, with 67.7% of respondents indicating a decline in the global economy as a potential risk. This is followed by job losses and a decline in the domestic economy, both of which ranked at 41.9%. An excessive supply of new property launches is also a concern at 41.9%.