Property market turns pessimistic amid Middle East crisis: NUS
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks impressions and expectations of the property industry with quarterly studies of top executives in Singapore realty firms.
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Sentiment also dropped in the retail and hospitality property markets. The prime retail and suburban retail segments logged current net equilibriums of -20% and -15% for 1Q2026, whilst the resort and serviced apartment segment had a present net balance of -15%.
International political headwinds are casting a shadow over Singapore’s real estate market, according to the most up to date Property 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.
Still, the residential houses industry remains steady, with participants reflecting gauged assurance in the suburban household market. Across all real estate segments, suburban residential covered the listing with a positive current web balance and future internet equilibrium of +15% each.
“With the Composite Index sliding below the neutral threshold, it is clear that the industry is moving from an expansionary mindset to among defensive consolidation as organizations shift into a ‘risk-off’ standpoint,” states Qian.
It makes up a Current Sentiment Index and a Future Sentiment Index, that monitor changes over the past six months and the following 6 months, respectively. Scores from both indices are accumulated to derive a Compound Index, that shows general market sentiment.
Teacher Qian Wenlan, supervisor of the NUS Ireus, associates the pessimistic shift in the business to macroeconomic headwinds stemming from the dispute taking place in the Middle East. “The continuous situation in the Middle East– with its cascading results on climbing power costs, persistent inflation, and elevated rates of interest– has actually dampened property view right here in Singapore,” she explains.
Both the present and future view indices fell in 1Q2026. The former contracted to 4.9 from the past quarter’s 6.1. The latter slid to 5.0 from 5.5 in the preceding quarter.
Nonetheless, belief in the prime housing market has relaxed. While the section held a positive current net balance of 5% in 1Q2026, the number is a marked decline from the 41% logged in the last quarter. “The prime residential field is inherently much more sensitive to changes in global capital and international buyer notion,” indicates Qian.
Offices fared fairly much better. Whilst the sector’s present net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a restricted upcoming supply pipeline are expected to reinforce this sector, shown in a positive future overview of +15%.
Throughout commercial and industrial sectors, sentiments generally decreased. The business park and hi-tech room industry led this downturn, uploading a present internet equilibrium of -25% and a future net balance of -20%.
Survey results shown 50% of developers anticipate higher prices for brand-new property release for the following six months, while 60% anticipate start quantities to hold firm, supported by resilient purchaser need.
