Property market turns pessimistic amid Middle East crisis: NUS
It comprises a Current Sentiment Index and a Future Sentiment Index, which monitor modifications over the prior six months and the next six months, specifically. Scores from both of these indices are aggregated to obtain a Compound Index, which shows general market sentiment.
Across commercial and industrial segments, beliefs generally declined. The business park and hi-tech room market led this downturn, posting an existing net equilibrium of -25% and a future net balance of -20%.
International political headwinds are casting a shadow over Singapore’s real estate industry, according to the latest Realty Sentiment Index (Resi) released by the National University of Singapore (NUS). The Composite Sentiment Index plunged to 4.9 in 1Q2026, from 5.8 in the last quarter.
Both the current and future view indices fell 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.
Amberwood at Holland Singapore
Sentiment also fell in the retail and hospitality property markets. The prime retail and suburban retail sections logged current net equilibriums of -20% and -15% for 1Q2026, whilst the resort and serviced apartment segment had a present net balance of -15%.
Offices fared fairly far better. Whilst the market’s current net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are expected to boost this section, reflected in a favorable future outlook of +15%.
Professor Qian Wenlan, director of the NUS Ireus, associates the pessimistic move in the business to macroeconomic headwinds originating from the problem occurring in the Middle East. “The recurring crisis in the Middle East– with its cascading effects on rising energy costs, persistent inflation, and raised rate of interest– has dampened property view right here in Singapore,” she explains.
Still, the domestic home market continues to be steady, with participants mirroring gauged assurance in the rural non commercial market. Across all realty segments, country residential covered the listing with a positive present web equilibrium and future web equilibrium of +15% each.
Nevertheless, belief in the prime residential market has softened. Whilst the segment held a positive current net 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 conscious changes in global funding and international buyer notion,” mentions Qian.
“With the Composite Index sliding beneath the neutral limit, it is clear that the market is shifting from an expansionary mindset to among defensive consolidation as companies shift right into a ‘risk-off’ stance,” claims Qian.
Study results indicated 50% of property developers anticipate higher prices for new household release for the next 6 months, while 60% predict start quantities to hold firm, supported by durable buyer demand.
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and assumptions of the real estate industry via quarterly questionnaires of top executives in Singapore realty firms.
