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Developers feel worse about Singapore property outlook
Expectations of worsening property market conditions grew stronger in the fourth quarter of 2014 among Singapore real estate developers, with the residential outlook remaining gloomy, according to a survey by the Real Estate Developers' Association of Singapore (Redas).
The NUS-Redas Real Estate Sentiment Index showed that overall market sentiment in Singapore fell to 3.4 in the fourth quarter from 3.7 in the third quarter. A sub-five reading indicates expectations of deteriorating conditions, while a score above five reflects forecasts of improving conditions.
"The continual weakening of the market sentiment in this quarter was mainly driven by poor performance in the residential sectors," National University of Singapore Associate Professor Sing Tien Foo said in a statement. "'Feel good' factors that will lift up the residential property market sentiment are not on the horizon."
Sentiment remained the most bleak about the residential sector.
The difference between the proportion of respondents who picked positive options and those who picked negative answers showed a net -59 per cent current balance for the prime residential sector. The balance was -61 per cent for future sentiment for that sector.
The suburban residential sector had a current net balance of -52 per cent, worsening to -65 per cent when looking at the future.
The office sector, however, remained resilient. The current net balance for office properties was a positive 38 per cent. That balance was unchanged when respondents were asked about future sentiment.