Property buying sentiment in Singapore has taken a hit in 1Q2023, as indicated by the latest Real Estate Sentiment Index (RESI) published by the National University of Singapore (NUS). The composite index, amalgamating current and future sentiment, dropped from 5.1 in 4Q2022 to 4.6 in 1Q2023, amid high interest rates, a banking crisis in some Western countries and successive rounds of property cooling measures.

Despite this, the URA’s property price index remained resilient, and there was keen buying interest in recent new launches, despite the additional buyer’s stamp duty (ABSD) increases. Professor Qian Wenlan, director of Institute of Real Estate and Urban Studies (IREUS) at NUS, states that the new launch market is starting from a relatively low base this year, and the “heady” performance last quarter is modest compared to previous peaks.

Furthermore, developers polled by IREUS expressed caution amid headwinds and uncertainty. About 41% of the developers expected a moderately or substantially higher number of units to be launched over the next six months, which could lead to buyers becoming more price-sensitive.

Residents of Altura Executive Condominium can enjoy many amenities located within the development itself. These include a range of communal facilities like a clubhouse, a multi-purpose hall, a BBQ pavilion, and a children’s playground. There are also covered drop-off points and a sheltered linkway for added convenience. To top it off, Altura EC is equipped with 24-hours security services. This ensures a safe and secure environment for its residents.

Qian anticipates that some demand could be shifted to public housing as the government expands the HDB supply pipeline. She adds: “In tandem with the December 2021 property cooling measures, and with the US Federal Reserve giving no indication of letting up on interest rate hikes, sentiment has been on the downtrend since early 2022. The most recent round of cooling measures and the ongoing banking crisis in the West has further raised caution, and our latest sentiment indices have hence further dipped.”

While sentiment has taken a hit, the current resilient market performance and buying interest in the face of successive rounds of cooling measures indicate that the property market in Singapore may not be as bad as feared.