Property market turns pessimistic amid Middle East crisis: NUS
Across business and industrial sections, beliefs broadly declined. The business park and hi-tech area market led this downturn, publishing a current web equilibrium of -25% and a future net balance of -20%.
Both the current and future view 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.
Professor Qian Wenlan, director of the NUS Ireus, associates the depressed move in the industry to macroeconomic headwinds originating from the problem happening in the Middle East. “The ongoing crisis in the Middle East– with its cascading results on climbing energy costs, persistent inflation, and raised interest rates– has dampened property sentiment right here in Singapore,” she explains.
It makes up a Current Sentiment Index and a Future Sentiment Index, which track changes over the previous six months and the following 6 months, specifically. Scores from both indices are accumulated to obtain a Compound Index, that shows overall market view.
International political headwinds are casting a shadow over Singapore’s real estate market, according to the current Property Sentiment Index (Resi) released by the National University of Singapore (NUS). The Composite Sentiment Index plunged to 4.9 in 1Q2026, from 5.8 in the last quarter.
Belief also decreased 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, whilst the hotel and serviced apartment segment had an existing net balance of -15%.
Workplaces fared relatively better. Whilst the industry’s present net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a restricted upcoming supply pipeline are expected to reinforce this section, mirrored in a favorable future expectation of +15%.
“With the Composite Index slipping beneath the neutral limit, it is clear that the market is moving from an expansionary mindset to one of protective consolidation as services change right into a ‘risk-off’ stance,” says Qian.
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks impressions and expectations of the real property industry through quarterly surveys of top execs in Singapore real property business.
Study results suggested 50% of property developers expect greater costs for new household release for the following 6 months, whilst 60% forecast launch volumes to hold firm, sustained by resilient customer need.
Kassia Condo Tripartite Developers Pte Ltd
Still, the domestic home industry stays steady, with participants showing determined trust in the suburban household market. Throughout all real estate sectors, rural household covered the list with a positive present internet equilibrium and future net equilibrium of +15% each.
However, sentiment in the top residential market has softened. While the segment held a positive current net balance of 5% in 1Q2026, the number is a labeled decline from the 41% logged in the last quarter. “The prime residential industry is naturally a lot more sensitive to shifts in global capital and international buyer notion,” notes Qian.
