The National University of Singapore (NUS) has reported a notable increase in the Real Estate Sentiment Index (RESI) for the second quarter of 2025. The index, which measures the perceptions and expectations of senior executives in the real estate sector, saw the Current Sentiment Index rise from 4.2 in the first quarter to 5.7 in the second quarter. Similarly, the Future Sentiment Index increased from 4.5 to 5.7, indicating a cautiously positive outlook despite ongoing global economic uncertainties.
The Composite Sentiment Index also improved, climbing from 4.3 to 5.7. This uptick reflects a better-than-expected domestic economic performance, even as global growth slows and trade risks mount. Professor Qian Wenlan noted that the market’s adjustment to the Trump tariffs and a 90-day pause in domestic economic activity contributed to the improved sentiment.
In terms of sector performance, Prime Residential, Suburban Residential, and Hotel/Serviced Apartment sectors showed positive net balances, with Prime Residential leading at +35%. Conversely, Business Park/Hi-tech Space recorded the most negative balance, dropping to -31%.
Potential risks identified for the next six months include a slowdown in the global economy, job losses, and rising construction costs. Despite these concerns, 43.7% of developers expect unit prices for new residential launches to rise moderately, whilst 56.2% anticipate an increase in the number of units launched.
The findings underscore the resilience of Singapore’s real estate market amidst external pressures, with developers remaining cautious yet optimistic about future prospects.
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