Property market turns pessimistic amid Middle East crisis: NUS
Made by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and assumptions of the real estate industry with quarterly surveys of senior executives in Singapore real property business.
“With the Composite Index slipping below the neutral threshold, it is clear that the sector is moving from an expansionary mindset to among protective consolidation as businesses change right into a ‘risk-off’ stance,” says Qian.
Professor Qian Wenlan, director of the NUS Ireus, attributes the gloomy move in the industry to macroeconomic headwinds originating from the dispute taking place in the Middle East. “The ongoing crisis in the Middle East– with its cascading results on rising energy charges, persistent inflation, and raised rates of interest– has actually dampened property view here in Singapore,” she explains.
Survey results indicated 50% of developers anticipate higher rates for brand-new property release for the next 6 months, while 60% forecast launch volumes to hold firm, supported by durable purchaser demand.
Across business and industrial segments, views generally declined. The business park and hi-tech area market led this downturn, publishing a present net balance of -25% and a future net balance of -20%.
Nonetheless, belief in the prime housing market has actually lightened. While the segment held a positive current final balance of 5% in 1Q2026, the figure is a labeled decline from the 41% logged in the last quarter. “The prime residential industry is naturally extra conscious changes in global funding and worldwide buyer sentiment,” notes Qian.
It makes up a Current Sentiment Index and a Future Sentiment Index, which monitor changes within the prior 6 months and the following 6 months, respectively. Scores from both of these indices are accumulated to obtain a Compound Index, that indicates general market belief.
Both the current and future view indices tumbled in 1Q2026. The past contracted to 4.9 from the previous quarter’s 6.1. The latter slipped to 5.0 from 5.5 in the preceding quarter.
Sentiment also fell in the retail and hospitality property markets. The prime retail and suburban retail sections logged current net balances of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had an existing net balance of -15%.
Global political headwinds are casting a shadow over Singapore’s real property industry, according to the current Realty 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 very last quarter.
Still, the domestic houses industry remains stable, with respondents reflecting determined assurance in the country non commercial market. Across all property sections, country residential topped the listing with a positive current web equilibrium and future internet balance of +15% each.
Workplaces fared relatively better. While the industry’s current net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are expected to bolster this section, reflected in a favorable future outlook of +15%.
