Sentiment in the Singapore property market appears to be improving after the government eased some of its curbs on the sector, but unsold inventory will still weigh in the short-term, a DBS executive said Tuesday.
Speaking to CNBC's "Squawk Box," DBS Private Bank Chief Investment Officer, Lim Say Boon, said there could be a small price rebound in the central region due to limited supply, but prices across the island will "at best" remain stable in 2017 due to corresponding demand-supply fundamentals.
"Stabilizing does not mean that the inventory already built up will not require some years to work through. They will still need some years to work through the inventory that's already out there," said Lim, who added that a sharp rebound across the board was unlikely.
Lim's comments came on the back of budding signs of strength from the property sector. Still, overall private home prices fell 0.5 percent on-quarter in the first three months of the year — the 14th straight quarter of declines.
Singapore developer UOL Group, however, was upbeat after offloading more than half of the units under construction at its latest Clement Canopy development launched in February.
"It is a good test, because this was the first launch of the year. Analysts were all interested to see what the take up was going to be like," said UOL Deputy CEO Liam Wee Sin, who assists in the management of its global portfolio of more than 11.5 billion Singapore dollars ($8.2 billion) in assets.
"To date, we have about 55 percent sold. To me that's very good and very healthy indeed," he said.
The development is a 50-50 joint venture between UOL and Singapore Land. UOL has two 40-story apartment blocks under construction, comprising 505 units, each configured with either two or four-bedrooms ranging from 635 square feet to 1,539 square feet.
The pricing varies between approximately $850,000 Singapore dollars ($608,000) to $1.82 million Singapore dollars ($1.30 million).