Developer sentiment crashes to 5-year low on back of deteriorating property market

Residential developers are the most pessimistic.

Developers were more downbeat on the property market’s prospects in the fourth quarter, a survey by the Real Estate Developers' Association of Singapore (Redas) revealed.

The NUS-Redas Real Estate Sentiment Index showed that overall market sentiment in Singapore fell to 3.4 in the fourth quarter from 3.7 in the third quarter. This is one of the lowest points recorded in the last 5 years.

A sub-five reading indicates expectations of deteriorating conditions. The index last registered a reading above five in the second quarter of 2011.

"The continual weakening of the market sentiment in this quarter was mainly driven by poor performance in the residential sectors," National University of Singapore associate professor Sing Tien Foo said in a statement.

Sentiment about the residential sector remained the most bleak, while the office sector, remained resilient.