HOMEBUYERS have to brace themselves for higher prices as about 71 per cent of developers expect unit prices of new launches in the next 6 months to be moderately or substantially higher, the results of a poll revealed.
The Q1 2022 survey showed that another 24 per cent expect new launch prices to maintain at the same price level, while only 5 per cent expect prices to be substantially lower.
That’s according to the latest Real Estate Sentiment Index (RESI) published by the National University of Singapore Real Estate, which represents the university’s Department of Real Estate and its Institute of Real Estate and Urban Studies (IREUS).
In comparison, about 60 per cent of respondents had expected unit prices of new launches to be moderately or substantially higher in the Q4 2021 poll, while 35 per cent expected prices to remain the same.
In terms of future launches and sales, about 65 per cent of developers polled in the Q1 2022 survey expect moderately more units to be launched in the next 6 months, while some 15 per cent anticipate a moderately lower number.
Meanwhile, rising construction costs have joined rising inflation and interest rates as the top 2 potential risk factors in the next 6 months for almost 95 per cent of senior executives in real estate companies.