Property market turns pessimistic amid Middle East crisis: NUS
Professor Qian Wenlan, director of the NUS Ireus, attributes the pessimistic move in the business to macroeconomic headwinds originating from the problem occurring in the Middle East. “The continuous situation in the Middle East– with its plunging impacts on surging energy costs, consistent inflation, and elevated rate of interest– has actually dampened property view right here in Singapore,” she explains.
Nevertheless, belief in the prime residential market has actually softened. Whilst the sector held a positive current final balance of 5% in 1Q2026, the number is a labeled decrease from the 41% logged in the last quarter. “The prime residential field is naturally a lot more sensitive to changes in global funding and international buyer sentiment,” notes Qian.
Still, the residential housing market continues to be stable, with participants reflecting gauged confidence in the country residential market. Across all property sections, rural residential topped the list with a positive current web balance and future net balance of +15% each.
Sentiment also dropped in the retail and hospitality property markets. The prime retail and suburban retail sectors logged current net balances of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had an existing net equity of -15%.
International political headwinds are casting a shadow over Singapore’s real property market, according to the latest Realty Sentiment Index (Resi) released by the National University of Singapore (NUS). The Composite Sentiment Index dipped to 4.9 in 1Q2026, from 5.8 in the last quarter.
Both the present and future view indices tumbled in 1Q2026. The previous contracted to 4.9 from the previous quarter’s 6.1. The latter slipped to 5.0 from 5.5 in the preceding quarter.
Across commercial and industrial sectors, views broadly declined. The business park and hi-tech room market led this downturn, posting an existing web balance of -25% and a future net balance of -20%.
“With the Composite Index sliding beneath the neutral threshold, it is clear that the sector is shifting from an expansionary mindset to one of protective consolidation as businesses change into a ‘risk-off’ standpoint,” claims Qian.
It comprises a Current Sentiment Index and a Future Sentiment Index, which monitor changes within the past six months and the following 6 months, respectively. Scores from both of these indices are accumulated to derive a Compound Index, which shows total market belief.
Workplaces fared fairly far better. Whilst the sector’s existing net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are anticipated to bolster this sector, shown in a positive future overview of +15%.
Survey results indicated 50% of property developers expect higher costs for brand-new household start for the following 6 months, while 60% forecast launch volumes to hold firm, supported by resilient buyer demand.
Made by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks perceptions and expectations of the property industry with quarterly questionnaires of senior executives in Singapore real property business.
