THERE is a marginal improvement in the market sentiment for real estate in the second quarter of this year, although sentiment remains weak, according to the latest NUS-Redas Real Estate Sentiment Index survey.
The Current Sentiment Index inched up to 3.9, from a score of 3.8 in Q1 2015. A score below five suggests worsening market conditions, while a score above five indicates improving conditions.
Meanwhile, the Future Sentiment Index - which measures sentiment towards the market outlook over the next six months - edged up to 4 from 3.7 in the prior quarter, indicating that those polled were more optimistic on the outlook for the next six months.
The Composite Sentiment Index, a derived indicator for the overall real estate market sentiment in Singapore, came in at 3.9 in Q2 2015, up from 3.8 in Q1 2015.
The worst-performing real estate sectors in the second quarter were prime residential, suburban residential as well as prime retail.
Among the potential risks flagged which could weigh on market sentiment in the next six months were a slowdown in the global economy, rising inflation/interest rates as well as excessive supply from new property launches.
The quarterly survey polls senior executives of Redas (Real Estate Developers' Association of Singapore) member firms.