Property market turns pessimistic amid Middle East crisis: NUS
Made by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and assumptions of the property market through quarterly questionnaires of top executives in Singapore real estate companies.
Nonetheless, belief in the top housing market has actually lightened. Whilst the section held a favorable current final balance of 5% in 1Q2026, the figure is a noticeable decline from the 41% logged in the former quarter. “The prime residential sector is inherently extra conscious shifts in global funding and global buyer notion,” indicates Qian.
Across business and industrial segments, beliefs extensively declined. The business park and hi-tech room industry led this downturn, publishing an existing web balance of -25% and a future net balance of -20%.
Sentiment also decreased in the retail and hospitality property markets. The prime retail and suburban retail sections logged current net balances of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had an existing net balance of -15%.
Study results suggested 50% of property developers expect greater prices for brand-new home launches for the following 6 months, whilst 60% predict launch volumes to hold firm, supported by resistant buyer demand.
“With the Composite Index sliding beneath the neutral threshold, it is clear that the sector is moving from an expansionary mindset to among defensive consolidation as companies shift into a ‘risk-off’ position,” states Qian.
Workplaces fared reasonably much better. Whilst the sector’s existing net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are expected to bolster this section, shown in a positive future overview of +15%.
Still, the domestic houses market continues to be stable, with participants showing gauged trust in the suburban non commercial market. Throughout all property sections, suburban non commercial covered the listing with a positive current net balance and future internet equilibrium of +15% each.
It comprises a Current Sentiment Index and a Future Sentiment Index, that monitor modifications over the previous six months and the following six months, specifically. Scores from both of these indices are aggregated to derive a Compound Index, which indicates overall market belief.
Global political headwinds are casting a shadow over Singapore’s real estate market, according to the most up to date Real Estate Sentiment Index (Resi) published by the National University of Singapore (NUS). The Composite Sentiment Index plunged to 4.9 in 1Q2026, from 5.8 in the last quarter.
Professor Qian Wenlan, supervisor of the NUS Ireus, associates the gloomy move in the business to macroeconomic headwinds originating from the dispute taking place in the Middle East. “The recurring crisis in the Middle East– with its cascading impacts on growing energy costs, relentless inflation, and raised rates of interest– has actually dampened property sentiment below in Singapore,” she explains.
Both the present and future view indices tumbled in 1Q2026. The former contracted to 4.9 from the previous quarter’s 6.1. The last slid to 5.0 from 5.5 in the preceding quarter.
