Further anticipate Govt to intercede to reduce Singapore real estate market according to NUS survey

Further market watchers are anticipating the Singapore Government to intervene to cool the private house market, while peaking construction value have gain on financial distress as the above possible threat reason that may constitute point of view in the coming six months. One threat reason that arise heavily was the possible threat of government interfere to cool the economy, which jumped to 44.7 per cent in the fourth quarter of 2020, up from 19.2 per cent in the previous quarter.

Besides that might be the threat of property price bubble or overly speculative scheme, which rose to 25.5 per cent, from 5.8 per cent in the third quarter.

Even though the Covid-19 widespread, private residential property prices arisen 2.1 per cent in October to December over the past year - the abruptest quarterly rose since the second quarter of 2018 when they jumped 3.4 per cent before real estate cooling action affect in July that year. The survey also appeared more review over the up coming costs of construction, with 85.1 per cent of respondents mentioned it as a threat reason versus 76.9 per cent in the previous quarter.

One respondent said: "Construction costs are anticipated to arise in the next six months because of lack of job, supply intervention of construction materials and stricter policy implemented on building sites. This may have causes to determined supply-demand incompatible in the short time." However, the segment of respondents who showed job losses/a decline in local finance as a possible threat reason fell to 61.7 per cent from 100 per cent, while those who were scared about the reduction in the worldwide economy reduced to 76.6 per cent from 96.2 per cent.