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Thread: More Singapore developers looking to hike condo launch prices

  1. #1
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    Default More Singapore developers looking to hike condo launch prices

    More Singapore developers looking to hike condo launch prices

    May 26, 2022

    HOMEBUYERS have to brace themselves for higher prices as about 71 per cent of developers expect unit prices of new launches in the next 6 months to be moderately or substantially higher, the results of a poll revealed.

    The Q1 2022 survey showed that another 24 per cent expect new launch prices to maintain at the same price level, while only 5 per cent expect prices to be substantially lower.

    That’s according to the latest Real Estate Sentiment Index (RESI) published by the National University of Singapore Real Estate, which represents the university’s Department of Real Estate and its Institute of Real Estate and Urban Studies (IREUS).

    In comparison, about 60 per cent of respondents had expected unit prices of new launches to be moderately or substantially higher in the Q4 2021 poll, while 35 per cent expected prices to remain the same.

    In terms of future launches and sales, about 65 per cent of developers polled in the Q1 2022 survey expect moderately more units to be launched in the next 6 months, while some 15 per cent anticipate a moderately lower number.

    Meanwhile, rising construction costs have joined rising inflation and interest rates as the top 2 potential risk factors in the next 6 months for almost 95 per cent of senior executives in real estate companies.

    The proportion of respondents indicating a slowdown in the global economy as a potential risk also increased the most compared to the previous quarter, rising from 44.7 per cent to 79.5 per cent.

    Correspondingly, about 64 per cent of respondents highlighted tightening of financing and liquidity in the debt market as a potential risk, a slight decline compared to Q4 2021’s 65.8 per cent. It stood at 32.6 per cent in Q3 2021.

    Government intervention to cool the market as a potential risk factor continued to decline, dropping from 39.5 per cent in the previous quarter to 25.6 per cent in Q1 2022. It was 62.8 per cent in Q3 2021.

    The RESI study’s composite sentiment index, a derived indicator for overall real estate market sentiment, improved after Singapore reopened its borders and further eased Covid-19 safe management measures, rising from 5.4 in Q4 2021 to 6.1 in Q1 2022.

    “However, the rise in inflation could potentially be disruptive as costs of oil and other raw materials escalate,” said IREUS deputy director Lee Nai Jia, adding that rising interest rates will make mortgage loans and other forms of debt funding more onerous.

    “Real estate has often been perceived as a good hedge against inflation. The positives from increased demand are likely to offset the negatives from the government measures and uncertainty.”

    https://www.businesstimes.com.sg/rea...-launch-prices

  2. #2
    Join Date
    Mar 2022
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    Default Re: More Singapore developers looking to hike condo launch prices

    Next upcoming new launch to watch.. https://sgcondoslaunch.com/amo-residence/

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