Business sentiment amongst Singapore property players improves in Q2

The current sentiment index rose to 4.8.

Business sentiment amongst property players in Singapore improved in Q2, driven by expectations of better economic performance in the second half of the year.

Data from the National University of Singapore (NUS) Real Estate Sentiment Index showed that the Current Sentiment Index improved to 4.8 from 4.7 in Q1.

The Composite Sentiment Index and Future Sentiment Index remained constant at 4.9 and 5.1, respectively.

“Market sentiments remain largely stable and cautiously positive,” NUS reported.

Sector-wise, players said Hotels/Serviced Apartments (+35%) and Suburban Retail (+4%) led Q2 and will continue to perform well.

Meanwhile, the players remain concerned about a slowdown in the global economy (73.1%), rising construction costs (46.2%), job losses in the domestic economy, and increased supply of new development (38.5%).

Some 34.6% raised concerns regarding the excessive supply of new property launches.

Other concerns include government intervention to cool the market (30.8%), rising inflation/ interest rates (11.8%), and the tightening of financing/liquidity in the debt market (19.2%).