Property market turns pessimistic amid Middle East crisis: NUS
Offices fared reasonably much better. While the industry’s existing net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are expected to reinforce this segment, mirrored in a favorable future outlook of +15%.
Nevertheless, sentiment in the prime residential market has actually softened. While the section secured a favorable current net balance of 5% in 1Q2026, the figure is a marked decrease from the 41% logged in the last quarter. “The prime residential field is inherently extra conscious shifts in global capital and global buyer notion,” mentions Qian.
Professor Qian Wenlan, supervisor of the NUS Ireus, attributes the pessimistic turn in the business to macroeconomic headwinds stemming from the dispute taking place in the Middle East. “The continuous situation in the Middle East– with its cascading effects on growing energy costs, consistent 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 record changes within the past six months and the following 6 months, respectively. Scores from both of these indices are aggregated to derive a Composite Index, that shows overall market belief.
Both the present and future view indices fell 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.
International political headwinds are casting a shadow over Singapore’s real estate market, according to the most recent Real Estate 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.
Survey results shown 50% of developers expect greater prices for new home launches for the next 6 months, whilst 60% predict start quantities to hold firm, supported by durable customer demand.
Across commercial and industrial segments, sentiments generally decreased. The business park and hi-tech area market led this downturn, publishing a current net equilibrium of -25% and a future net balance of -20%.
Belief also fell in the retail and hospitality real estate markets. The prime retail and suburban retail segments logged current net balances of -20% and -15% for 1Q2026, while the hotel and serviced apartment segment had a present net balance of -15%.
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 industry through quarterly studies of top execs in Singapore real estate business.
“With the Composite Index slipping below the neutral threshold, it is clear that the sector is moving from an expansionary mindset to one of defensive consolidation as companies shift right into a ‘risk-off’ stance,” claims Qian.
Still, the domestic home industry stays secure, with respondents mirroring measured trust in the suburban non commercial market. Across all realty sectors, country non commercial covered the list with a positive current net equilibrium and future web equilibrium of +15% each.
