Property market turns pessimistic amid Middle East crisis: NUS
Teacher Qian Wenlan, director of the NUS Ireus, connects the depressed move in the market to macroeconomic headwinds stemming from the dispute taking place in the Middle East. “The recurring disaster in the Middle East– with its plunging results on climbing power costs, relentless inflation, and raised interest rates– has actually dampened property view below in Singapore,” she explains.
Global political headwinds are casting a shadow over Singapore’s real estate industry, according to the current Property Sentiment Index (Resi) released 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.
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and assumptions of the property market via quarterly surveys of senior executives in Singapore real estate firms.
Sentiment also decreased in the retail and hospitality property markets. The prime retail and suburban retail sectors logged current net equilibriums of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had a current net balance of -15%.
Across commercial and industrial segments, beliefs broadly decreased. The business park and hi-tech area industry led this downturn, publishing an existing web equilibrium of -25% and a future net balance of -20%.
Nonetheless, sentiment in the top residential market has lightened. While the segment held a favorable current net balance of 5% in 1Q2026, the figure is a labeled decrease from the 41% logged in the previous quarter. “The prime residential sector is naturally much more conscious changes in global funding and international buyer notion,” indicates Qian.
Workplaces fared reasonably much better. While the industry’s present net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a restricted upcoming supply pipeline are anticipated to strengthen this sector, shown in a favorable future outlook of +15%.
It comprises a Current Sentiment Index and a Future Sentiment Index, which record changes within the previous six months and the following six months, specifically. Scores from both indices are aggregated to derive a Compound Index, that indicates total market belief.
Both the present and future view indices fell in 1Q2026. The past contracted to 4.9 from the past quarter’s 6.1. The last slipped to 5.0 from 5.5 in the preceding quarter.
Study results suggested 50% of developers expect higher prices for brand-new household release for the following six months, whilst 60% anticipate launch volumes to hold firm, sustained by resilient customer demand.
Still, the domestic houses market stays steady, with respondents showing measured trust in the rural residential market. Throughout all property sections, suburban residential covered the list with a positive current web equilibrium and future web equilibrium of +15% each.
“With the Composite Index slipping below the neutral limit, it is clear that the market is moving from an expansionary mindset to one of defensive consolidation as businesses shift right into a ‘risk-off’ standpoint,” says Qian.
