More Singapore developers looking to hike condo launch prices

by Albert02

More Singapore developers looking to hike condo launch prices

More Singapore developers looking to hike condo launch prices. Homebuyers should brace themselves for higher prices, as 71% of developers expect unit prices of new launches in the next 6 months to be moderately or significantly higher, according to poll results.

According to the Q1 2022 survey, another 24% expect new launch prices to remain the same, while only 5% expect prices to be significantly lower.

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

In the Q4 2021 poll, roughly 60% of respondents expected new launch unit prices to be moderately or significantly higher, while 35% expected prices to remain the same.

In terms of future launches and sales, approximately 65 percent of developers polled in the Q1 2022 survey anticipate moderately more units to be launched in the next six months, while 15 percent anticipate a moderately lower number.

Meanwhile, rising construction costs have joined rising inflation and interest rates as the top two potential risk factors for nearly 95 percent of real estate executives over the next six months.

The proportion of respondents who see a global economic slowdown as a potential risk increased the most compared to the previous quarter, rising from 44.7 percent to 79.5 percent.

Similarly, approximately 64% of respondents identified tightening of financing and liquidity in the debt market as a potential risk, a slight decrease from 65.8% in Q4 2021. In the third quarter of 2021, it was 32.6 percent.

Government intervention to cool the market has continued to fall, falling from 39.5 percent in the previous quarter to 25.6 percent in Q1 2022. In the third quarter of 2021, it was 62.8 percent.

After Singapore reopened its borders and relaxed Covid-19 safe management measures, the RESI study’s composite sentiment index increased from 5.4 in Q4 2021 to 6.1 in Q1 2022.

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

“The benefits of increased demand are likely to outweigh the drawbacks of government policies and uncertainty.”

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