Property market turns pessimistic amid Middle East crisis: NUS
Study results indicated 50% of developers expect greater costs for new property launches for the following 6 months, whilst 60% forecast start volumes to hold firm, sustained by resilient buyer need.
Still, the domestic housing industry stays stable, with respondents mirroring gauged trust in the suburban household market. Throughout all real estate sections, country household covered the listing with a positive current web balance and future net balance of +15% each.
Teacher Qian Wenlan, supervisor of the NUS Ireus, associates the depressed turn in the industry to macroeconomic headwinds originating from the dispute occurring in the Middle East. “The ongoing disaster in the Middle East– with its cascading impacts on growing energy charges, relentless inflation, and elevated rate of interest– has dampened property sentiment right here in Singapore,” she explains.
“With the Composite Index sliding beneath the neutral limit, it is clear that the sector is moving from an expansionary mindset to among defensive consolidation as companies change into a ‘risk-off’ position,” says Qian.
Sentiment also fell in the retail and hospitality property markets. The prime retail and suburban retail segments logged current net equilibriums of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had a current net equity of -15%.
It comprises a Current Sentiment Index and a Future Sentiment Index, which record adjustments over the past 6 months and the next six months, specifically. Scores from both indices are aggregated to derive a Composite Index, which shows total market belief.
Nonetheless, belief in the top residential market has actually softened. Whilst the sector held a positive current net balance of 5% in 1Q2026, the figure is a noticeable decrease from the 41% logged in the former quarter. “The prime residential industry is naturally more conscious changes in global funding and international buyer sentiment,” notes Qian.
Both the current and future view indices tumbled 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.
Offices fared relatively better. Whilst the industry’s current net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a restricted upcoming supply pipeline are anticipated to boost this segment, reflected in a positive future expectation of +15%.
Produced 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 industry via quarterly studies of top executives in Singapore real estate business.
Across commercial and industrial sections, beliefs broadly declined. The business park and hi-tech room industry led this downturn, posting a present internet equilibrium of -25% and a future net balance of -20%.
International political headwinds are casting a shadow over Singapore’s realty industry, according to the current 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 last quarter.
