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What’s behind the apparent improvement in property market sentiment? Would a turnaround at this point be sustainable?

The continued decline in property prices – the smallest decrease in 15 quarters according to URA flash estimates for Q2 – is probably one of the key factors behind the apparent improvement in property market sentiment, as it signals a possible bottoming out of the market.

While the figures are encouraging, we should note that interest rates are edging up, and this is likely to bring about some prudence amongst buyers if rates continue to climb. The apparent “turnaround” may therefore not be sustainable at this point, and the next quarter or two should give us a better indication of whether the property market is indeed turning around.

Ronald Lee
Managing Director
PrimeStaff Management Services Pte Ltd