Property market sentiment up again, developers remain cautious

Property market sentiment improved again slightly in the third quarter, although developers remain cautious over possible macro and policy risks that could destabilise the market.

The real estate composite sentiment index for July to September inched up to 4.9, from 4.7 in the second quarter. It is compiled by the Real Estate Developers' Association of Singapore (Redas) and the National University of Singapore (NUS).

The index had declined for four straight quarters last year to a trough of 3.3 in the fourth quarter. A score below five indicates deteriorating market conditions while a score above five reflects improving market conditions.

Redas chief executive Lee Suan Hiang said that although sentiment has improved, developers are concerned over the boost in land supply and the cost of doing business.