Property market turns pessimistic amid Middle East crisis: NUS
Survey results indicated 50% of property developers anticipate greater prices for brand-new residential release for the next six months, whilst 60% forecast start quantities to hold firm, sustained by durable purchaser demand.
It makes up a Current Sentiment Index and a Future Sentiment Index, which monitor modifications over the prior six months and the next six months, respectively. Scores from both indices are aggregated to derive a Compound Index, which shows total market view.
Both the current and future sentiment indices tumbled in 1Q2026. The past contracted to 4.9 from the previous quarter’s 6.1. The last slid to 5.0 from 5.5 in the preceding quarter.
“With the Composite Index slipping below the neutral threshold, it is clear that the market is moving from an expansionary mindset to among defensive consolidation as organizations change into a ‘risk-off’ standpoint,” states Qian.
Teacher Qian Wenlan, director of the NUS Ireus, attributes the depressed shift in the market to macroeconomic headwinds coming from the dispute taking place in the Middle East. “The ongoing situation in the Middle East– with its plunging results on growing power costs, relentless inflation, and raised interest rates– has dampened property sentiment below in Singapore,” she explains.
Workplaces fared fairly better. Whilst the field’s existing net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a limited upcoming supply pipeline are expected to bolster this section, shown in a favorable future expectation of +15%.
Global political headwinds are casting a shadow over Singapore’s real estate industry, according to the latest Property Sentiment Index (Resi) published by the National University of Singapore (NUS). The Composite Sentiment Index dipped to 4.9 in 1Q2026, from 5.8 in the very last quarter.
Still, the residential houses industry stays stable, with participants reflecting measured confidence in the rural residential market. Throughout all property sectors, suburban household covered the listing with a positive current internet equilibrium and future internet balance of +15% each.
Nevertheless, belief in the top residential market has actually relaxed. While the segment secured a positive current final balance of 5% in 1Q2026, the figure is a marked decline from the 41% logged in the previous quarter. “The prime residential field is naturally much more conscious changes in global capital and global buyer notion,” mentions Qian.
Made by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks impressions and assumptions of the real estate market with quarterly studies of top executives in Singapore realty companies.
Belief also dropped in the retail and hospitality property markets. The prime retail and suburban retail sectors logged current net equilibriums of -20% and -15% for 1Q2026, whilst the hotel and serviced apartment segment had a current net equity of -15%.
Across business and industrial segments, sentiments extensively declined. The business park and hi-tech room market led this downturn, publishing an existing net balance of -25% and a future net balance of -20%.
