Property market turns pessimistic amid Middle East crisis: NUS
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, whilst the resort and serviced apartment segment had an existing net balance of -15%.
Nevertheless, belief in the top housing market has softened. Whilst the segment secured a positive current net balance of 5% in 1Q2026, the figure is a noticeable decline from the 41% logged in the last quarter. “The prime residential sector is inherently more sensitive to changes in global capital and worldwide buyer sentiment,” notes Qian.
International political headwinds are casting a shadow over Singapore’s real property market, according to the most recent Property Sentiment Index (Resi) published 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.
Study results shown 50% of developers expect greater prices for new household release for the following six months, while 60% predict launch volumes to hold firm, supported by resistant customer demand.
Throughout commercial and industrial sections, sentiments extensively declined. The business park and hi-tech area market led this downturn, posting a current internet equilibrium of -25% and a future net balance of -20%.
It makes up a Current Sentiment Index and a Future Sentiment Index, which track adjustments within the past 6 months and the next 6 months, specifically. Scores from both indices are accumulated to obtain a Compound Index, which suggests overall market belief.
Still, the domestic housing market continues to be stable, with respondents mirroring gauged assurance in the suburban residential market. Across all property sectors, suburban property topped the listing with a positive existing web balance and future net equilibrium of +15% each.
Generated by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and assumptions of the real property market via quarterly questionnaires of top executives in Singapore real estate business.
Both the current and future view indices tumbled in 1Q2026. The past contracted to 4.9 from the past quarter’s 6.1. The latter slipped to 5.0 from 5.5 in the preceding quarter.
Teacher Qian Wenlan, director of the NUS Ireus, associates the gloomy move in the industry to macroeconomic headwinds coming from the conflict occurring in the Middle East. “The continuous crisis in the Middle East– with its cascading impacts on growing energy costs, relentless inflation, and high rate of interest– has actually dampened property sentiment here in Singapore,” she explains.
“With the Composite Index sliding beneath the neutral threshold, it is clear that the industry is shifting from an expansionary mindset to among protective consolidation as services change right into a ‘risk-off’ stance,” says Qian.
Offices fared reasonably far better. Whilst the field’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 strengthen this sector, reflected in a positive future overview of +15%.
