Real estate execs notably downbeat on prime residential sector: Survey

But overall sentiment in Singapore’s market continues to improve in first quarter

Overall sentiment in Singapore’s real estate market continued to improve in the first quarter of 2024, but industry players have turned markedly more pessimistic on the prime residential sector, as well as the office and business park/high-tech segments.

Real estate executives polled by the Institute of Real Estate and Urban Studies (Ireus) at the National University of Singapore (NUS) cited major economic indicators pointing to higher growth, low unemployment rate and the easing of core inflation as reasons for overall improved sentiment.

Yet, survey respondents were notably more negative than positive on prospects for the prime residential segment.

“We are concerned with potential oversupply of residential apartments as the Government ramps up government land sales supply over the last few (quarters). Potential cooling measures are always a concern,” commented one survey respondent.

Those polled were most optimistic about prospects in the hotel/serviced apartment sector, buoyed by strong tourism arrivals and receipts, said Ireus, which conducts the quarterly survey.

Industry professionals were also more positive than negative on suburban retail and the industrial/logistics business.

Notably, the future sentiment index – reflecting outlook over the next six months – reached 5.1, above the neutral score of 5, for the first time in five consecutive months, said Ireus.