Further weakness seen in developer sentiment in Q3

DEVELOPERS' sentiment appears to have weakened further in the third quarter, following the introduction of the Total Debt Servicing Ratio (TDSR) framework in June.

The Real Estate Sentiment Index, which reflects overall market sentiment through the Composite Sentiment Index, was 3.9 in the third quarter; this was down from 4.5 in the second quarter, which was itself lower than the 4.8 reading of the first quarter.

The Future Sentiment Index also fell to 3.9 from 4.4 in the second quarter.

In this index developed by the Real Estate Developers' Association of Singapore (Redas) and the National University of Singapore, a score under five is a flag for deteriorating market co…