Local real estate market continues to rise but the increase slows down

Supported by the Federal Reserve's interest rate cut, the Singapore real estate market continued to rise, but the increase slowed down.

The National University of Singapore City and Real Estate Research Institute released the Real Estate Sentiment Index (RESI) for the fourth quarter of 2024 on Monday (February 24). The current Sentiment Index was 6.2, up 0.3 month-on-month.

The Future Sentiment Index and the Composite Sentiment Index, which reflects the overall real estate market, both rose slightly by 0.1 month-on-month, reaching 5.9 and 6.0 respectively.

The index is scored from 0 to 10, measuring the optimism or pessimism of the real estate industry surveyed about the market; the index exceeds 5, which means the market is optimistic, and below 5 means the market is deteriorating.

In the latest survey, nearly 78% of respondents believed that real estate regulation measures are the most important risks faced by the market, a sharp increase from 38% in the previous quarter.

Further reading

Local real estate market improved in the second quarter, and those who are more optimistic about the future market

Private home prices slowed to 3.9% last year, rents fell 1.9% for the first time in four years

Meanwhile, market concerns about the financing environment have risen as the Federal Reserve becomes more conservative about interest rate cuts this year. 44% of respondents believe that debt market financing and tightening liquidity may pose risks, a significant increase from 22.6% in the previous quarter. In addition, 41% of respondents expressed concern about rising inflation and rebound in interest rates.

For the next supply of the property market, 80% of the respondents expect more projects to be launched in the future, and about 67% believe that housing prices will rise further, but the increase may be mild.