In a recent press release, Singapore based property portal PropertyGuru has stated that seller optimism is up for the first time since 2015. Their platform, PropertyGuru Property Index1, has collected a significant amount of data from Singapore's housing firms, and with that data, has proven that sellers are feeling better about their sales and are ready to sell more property since 2015.
Q3 2017 was a stark rise, especially compared to the decline in the same quarter 2015. PropertyGuru's Index shows that optimism has risen from 94 to 97.1 percent since Q2 2017, the largest increase since the stark decline in Q3 2015. These numbers portray an increase in prices, along with a general acceptance that prices will continue to heal and transactions will grow into 2018.
“The PropertyGuru Property Index indicates that property sellers are moving their price expectations upwards, as optimism returns to the market. There is light at the end of the tunnel now that the market sentiment has finally taken a positive turn after two consecutive years of low seller confidence. On the other hand, consumers looking to buy homes should consider closing on their property purchases and lock in prices at the current level,” said Hari V. Krishnan, CEO, PropertyGuru Group.
On the other hand, property supply has gone down slightly since Q2 2017, dropping from 184 to 175 on the PropertyGuru Property Index. The price recovery is to blame for this, as real estate holders are waiting for the prices to stabilize before putting their properties on the market.
In a sense, these things are all good. We are seeing a good forecast for prices, and even though there was a decrease this quarter on properties put on the market, most sellers are just waiting for the greener pastures on the way in 2018. 2018 will be a better year for property sales, and investors understand that. The PropertyGuru's Property Index lays out that optimism easily, and in a few months, more real estate should be on the market.
Source: PropertyGuru Index