Property market turns pessimistic amid Middle East crisis: NUS
Offices fared relatively better. While the industry’s present net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a limited upcoming supply pipeline are expected to strengthen this section, shown in a favorable future outlook of +15%.
Still, the residential houses market remains secure, with participants showing gauged confidence in the suburban household market. Across all property sectors, country residential covered the list with a positive present internet equilibrium and future net equilibrium of +15% each.
It makes up a Current Sentiment Index and a Future Sentiment Index, which record modifications over the previous six months and the next six months, specifically. Scores from both indices are aggregated to derive a Composite Index, which suggests total market belief.
Teacher Qian Wenlan, supervisor of the NUS Ireus, attributes the pessimistic move in the industry to macroeconomic headwinds originating from the problem taking place in the Middle East. “The ongoing situation in the Middle East– with its plunging results on rising energy costs, persistent inflation, and elevated rate of interest– has actually dampened property view below in Singapore,” she explains.
Belief also fell in the retail and hospitality property markets. The prime retail and suburban retail sectors logged current net balances of -20% and -15% for 1Q2026, whilst the resort and serviced apartment segment had an existing net equity of -15%.
Nevertheless, belief in the top residential market has actually lightened. While the sector held a positive current final balance of 5% in 1Q2026, the number is a labeled decrease from the 41% logged in the previous quarter. “The prime residential industry is inherently a lot more conscious changes in global resources and worldwide buyer sentiment,” indicates Qian.
Survey results shown 50% of developers anticipate higher prices for brand-new household start for the next six months, while 60% anticipate launch volumes to hold firm, supported by durable buyer need.
Produced by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and expectations of the real property industry with quarterly studies of senior execs in Singapore real estate business.
“With the Composite Index slipping below the neutral limit, it is clear that the industry is moving from an expansionary mindset to one of defensive consolidation as services change right into a ‘risk-off’ position,” says Qian.
International political headwinds are casting a shadow over Singapore’s realty 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 dipped to 4.9 in 1Q2026, from 5.8 in the last quarter.
Both the current and future sentiment indices fell in 1Q2026. The previous contracted to 4.9 from the previous quarter’s 6.1. The last slipped to 5.0 from 5.5 in the preceding quarter.
Across commercial and industrial sections, beliefs broadly declined. The business park and hi-tech area industry led this downturn, publishing an existing internet equilibrium of -25% and a future net balance of -20%.
