Property market turns pessimistic amid Middle East crisis: NUS
Study results suggested 50% of property developers expect higher rates for brand-new home release for the following six months, whilst 60% predict launch quantities to hold firm, sustained by durable purchaser need.
Nevertheless, sentiment in the top residential market has actually lightened. Whilst the sector held a positive current final balance of 5% in 1Q2026, the number is a noticeable decrease from the 41% logged in the former quarter. “The prime residential field is inherently more conscious shifts in global resources and international buyer notion,” mentions Qian.
Professor Qian Wenlan, supervisor of the NUS Ireus, attributes the depressed turn in the business to macroeconomic headwinds stemming from the problem taking place in the Middle East. “The recurring situation in the Middle East– with its cascading impacts on growing power charges, persistent inflation, and high rate of interest– has actually dampened property sentiment right here in Singapore,” she explains.
It makes up a Current Sentiment Index and a Future Sentiment Index, which monitor changes over the prior 6 months and the following six months, specifically. Scores from both indices are accumulated to derive a Compound Index, that shows total market view.
Both the current and future sentiment indices dropped in 1Q2026. The previous contracted to 4.9 from the previous quarter’s 6.1. The last slid to 5.0 from 5.5 in the preceding quarter.
Still, the residential housing industry remains steady, with participants mirroring gauged trust in the rural non commercial market. Throughout all property sectors, country residential topped the list with a positive existing web equilibrium and future net balance of +15% each.
Throughout business and industrial sections, sentiments broadly decreased. The business park and hi-tech room market led this downturn, uploading a current internet balance of -25% and a future net balance of -20%.
Global political headwinds are casting a shadow over Singapore’s real estate industry, according to the most up to date Real Estate Sentiment Index (Resi) presented by the National University of Singapore (NUS). The Composite Sentiment Index plunged to 4.9 in 1Q2026, from 5.8 in the last quarter.
Belief 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 hotel and serviced apartment segment had an existing net balance of -15%.
Offices fared relatively far better. Whilst the field’s current net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are anticipated to strengthen this sector, shown in a positive future outlook of +15%.
“With the Composite Index slipping below the neutral threshold, it is clear that the industry is moving from an expansionary mindset to among defensive consolidation as services change into a ‘risk-off’ standpoint,” states Qian.
Produced by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks perceptions and expectations of the real estate industry through quarterly surveys of top execs in Singapore realty business.
