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 perceptions and expectations of the property market via quarterly studies of senior execs in Singapore real estate companies.
Still, the domestic houses industry stays stable, with respondents showing gauged trust in the country household market. Throughout all property sections, rural household topped the listing with a positive present internet balance and future web balance of +15% each.
Throughout commercial and industrial sectors, beliefs generally declined. The business park and hi-tech room market led this downturn, publishing a current web balance of -25% and a future net balance of -20%.
It makes up a Current Sentiment Index and a Future Sentiment Index, that record changes over the past six months and the following six months, specifically. Scores from both indices are aggregated to obtain a Compound Index, which suggests overall market view.
Offices fared fairly far better. While the sector’s current net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a limited upcoming supply pipeline are anticipated to reinforce this section, mirrored in a favorable future outlook of +15%.
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.
Professor Qian Wenlan, director of the NUS Ireus, connects the gloomy move in the industry to macroeconomic headwinds coming from the conflict taking place in the Middle East. “The recurring situation in the Middle East– with its plunging impacts on growing energy prices, persistent inflation, and high rate of interest– has actually dampened property sentiment below in Singapore,” she explains.
Global political headwinds are casting a shadow over Singapore’s real property industry, according to the most recent Real Estate Sentiment Index (Resi) presented 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.
Survey results indicated 50% of developers anticipate higher rates for new property launches for the following six months, whilst 60% anticipate start quantities to hold firm, supported by durable buyer demand.
Nevertheless, sentiment in the prime residential market has lightened. While the sector 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 sector is naturally extra conscious shifts in global capital and global buyer sentiment,” notes Qian.
Belief also decreased 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%.
“With the Composite Index sliding beneath the neutral limit, it is clear that the sector is moving from an expansionary mindset to one of protective consolidation as companies change right into a ‘risk-off’ standpoint,” states Qian.
