Property market turns pessimistic amid Middle East crisis: NUS
Produced by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and expectations of the real property market through quarterly questionnaires of top executives in Singapore real property companies.
Nevertheless, sentiment in the prime housing market has relaxed. While the segment secured a positive current net balance of 5% in 1Q2026, the number is a marked decline from the 41% logged in the previous quarter. “The prime residential sector is naturally extra conscious changes in global resources and international buyer sentiment,” indicates Qian.
Teacher Qian Wenlan, director of the NUS Ireus, associates the pessimistic shift in the business to macroeconomic headwinds stemming from the conflict happening in the Middle East. “The recurring disaster in the Middle East– with its cascading impacts on climbing energy costs, relentless inflation, and high rates of interest– has dampened property view below in Singapore,” she explains.
International political headwinds are casting a shadow over Singapore’s real property industry, according to the most up to date Realty 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 very last quarter.
Lentor Gardens Residences condominium
Survey results suggested 50% of property developers anticipate higher costs for brand-new household launches for the next 6 months, while 60% anticipate launch volumes to hold firm, supported by durable purchaser need.
Workplaces fared fairly much better. While the field’s existing net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are expected to reinforce this section, mirrored in a positive future outlook of +15%.
It comprises a Current Sentiment Index and a Future Sentiment Index, that track modifications over the prior six months and the next 6 months, respectively. Scores from both of these indices are accumulated to derive a Compound Index, which suggests total market view.
“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 change right into a ‘risk-off’ stance,” claims Qian.
Sentiment also fell in the retail and hospitality real estate 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%.
Still, the domestic home market remains secure, with respondents showing gauged assurance in the suburban household market. Throughout all realty sections, suburban property topped the list with a positive existing net balance and future internet equilibrium of +15% each.
Both the current and future sentiment indices fell in 1Q2026. The former contracted to 4.9 from the previous quarter’s 6.1. The latter slipped to 5.0 from 5.5 in the preceding quarter.
Throughout business and industrial sections, views generally decreased. The business park and hi-tech room market led this downturn, uploading a present net equilibrium of -25% and a future net balance of -20%.
