SINGAPORE - Developer sentiment remains weak, according to the NUS-Redas Real Estate Sentiment Index (RESI) Survey for the fourth quarter of last year.

It found that the Composite Sentiment Index, a derived indicator for the overall real estate market sentiment in Singapore, went down to 3.4 from 3.7 in the third quarter.

A score under five indicates deteriorating market conditions, while scores above five indicate improving conditions.

The Current Sentiment Index declined to 3.6 from 3.7 in the third quarter while the Future Sentiment Index declined to 3.2 from 3.6 in the third quarter.

The residential sector was the worst performing sector, while the best performing sector was the office sector.

Some 35.1 per cent of the developers surveyed in the quarter expect new property launches to hold at the same level in the next six months, while 32.4 per cent expect moderately more launches.

A further 16.2 per cent of them indicated that they will launch moderately fewer units.

About 70.3 per cent of the developers anticipate a moderate decrease in residential property prices in the next six months while just 24.3 per cent of them expect prices to hold.

Overall, more than 70 per cent of respondents projected that property prices will decrease by 5 per cent to 10 per cent this year, with new sales transaction volume dropping by 15 per cent to 20 per cent.

A developer who took part in the survey said that pricing of new residential launches in the next six months is expected to be lower by about 10 per cent due to mortgage restrictions under the Total Debt Servicing Ratio (TDSR) framework.

After the upcoming Chinese New Year, developers are likely to unload their stocks and re-launch existing units, he said, adding that developers do not foresee the Government relaxing any of its cooling measures soon.

Some 43.5 per cent of the respondents hoped the Government will review the Additional Buyer's Stamp Duty, Seller's Stamp Duty and TDSR framework with a view to lifting them this year.