DEVELOPERS' sentiment weakened further in Q4 2015, according to the results of the NUS-Redas Real Estate Sentiment Index (RESI) survey.
The Current Sentiment Index fell to 3.6 from 3.7 in Q3 2015, while the Future Sentiment Index fell to 3.4 from 3.7 in Q3 2015.
A score under five indicates deteriorating market conditions, while scores above five indicate improving conditions.
The three sectors with the lowest net balance scores in Q4 2015 were the office, suburban residential and prime retail sectors.
The office sector was the worst performing one with a current net balance of -43 per cent and a future net balance of -67 per cent.
The net balance is the difference between the proportion of respondents who selected positive sentiments, and the proportion who selected negative options.
Nine in 10 of the respondents anticipate a slowing down in the global economy, and three in four expect that rises in inflation and interest rates will adversely impact market sentiment in the next six months.
More than six in 10 indicate that the property market will face further tightening in terms of finance and liquidity, while seven in 10 of the developers expect new launches to increase moderately and hold at the same level in the next six months.
One fifth indicated that they will launch moderately fewer units - 20 per cent more than the respondents who said so in the last quarter.
On price changes, six in 10 of the developers anticipate a moderate decrease in residential property prices in the next six months.
On translational effects to the stock market, 54.1 per cent of the respondents felt that there will be moderate impact on Reit (real estate investment trust) stock performance, especially with the recent interest rate hike by the US Federal Reserve.
But the impact on land bidding prices is expected to be minimal. About six in 10 of the respondents felt that the H1 2016 Government Land Sales (GLS) programme will have minimal impact on the demand in residential and commercial property sectors. Over half have indicated it will have moderate impact over the competitiveness in the GLS land bidding.