Property market turns pessimistic amid Middle East crisis: NUS
Across commercial and industrial sectors, views generally declined. The business park and hi-tech space industry led this downturn, uploading a current internet balance of -25% and a future net balance of -20%.
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks perceptions and assumptions of the real estate market via quarterly questionnaires of top executives in Singapore real estate firms.
Both the current and future view indices dropped in 1Q2026. The previous contracted to 4.9 from the previous quarter’s 6.1. The latter slid to 5.0 from 5.5 in the preceding quarter.
Belief also dropped in the retail and hospitality property markets. The prime retail and suburban retail sections logged current net equilibriums of -20% and -15% for 1Q2026, whilst the hotel and serviced apartment segment had a present net equity of -15%.
Teacher Qian Wenlan, supervisor of the NUS Ireus, connects the gloomy shift in the business to macroeconomic headwinds stemming from the dispute occurring in the Middle East. “The continuous situation in the Middle East– with its cascading impacts on rising energy charges, consistent inflation, and elevated interest rates– has actually dampened property sentiment below in Singapore,” she explains.
Study results shown 50% of property developers anticipate greater rates for brand-new property start for the next six months, whilst 60% predict start quantities to hold firm, sustained by resilient buyer demand.
Offices fared relatively far better. Whilst the market’s present net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are anticipated to reinforce this sector, reflected in a positive future outlook of +15%.
Global political headwinds are casting a shadow over Singapore’s realty market, according to the current 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.
It comprises a Current Sentiment Index and a Future Sentiment Index, which track modifications within the prior six months and the following 6 months, specifically. Scores from both of these indices are aggregated to obtain a Composite Index, which shows overall market view.
Still, the domestic houses industry stays secure, with respondents showing gauged assurance in the suburban household market. Throughout all property segments, country non commercial topped the list with a positive existing web equilibrium and future web equilibrium of +15% each.
Nonetheless, sentiment in the top housing market has actually softened. While the section held a favorable current net balance of 5% in 1Q2026, the figure is a noticeable decrease from the 41% logged in the former quarter. “The prime residential sector is inherently a lot more conscious changes in global capital and international buyer sentiment,” indicates Qian.
“With the Composite Index sliding below the neutral limit, it is clear that the sector is moving from an expansionary mindset to among defensive consolidation as companies shift right into a ‘risk-off’ stance,” states Qian.
