Property market turns pessimistic amid Middle East crisis: NUS
Global political headwinds are casting a shadow over Singapore’s real property market, according to the most recent Property 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 last quarter.
It comprises a Current Sentiment Index and a Future Sentiment Index, that monitor modifications within the past six months and the next six months, specifically. Scores from both of these indices are accumulated to obtain a Compound Index, which suggests total market view.
Workplaces fared fairly better. Whilst the market’s current net balance slipped to 0% from the 12% in 4Q2025, low Grade A vacancy and a restricted upcoming supply pipeline are expected to bolster this segment, shown in a positive future outlook of +15%.
Study results suggested 50% of developers expect higher costs for new property release for the next six months, while 60% predict start volumes to hold firm, sustained by resilient customer demand.
Sentiment also dropped in the retail and hospitality property markets. The prime retail and suburban retail segments logged current net balances of -20% and -15% for 1Q2026, while the resort and serviced apartment segment had a current net equity of -15%.
Both the current and future view indices fell in 1Q2026. The previous contracted to 4.9 from the past quarter’s 6.1. The last slid to 5.0 from 5.5 in the preceding quarter.
Teacher Qian Wenlan, director of the NUS Ireus, associates the gloomy move in the business to macroeconomic headwinds stemming from the dispute taking place in the Middle East. “The recurring crisis in the Middle East– with its plunging effects on climbing energy charges, relentless inflation, and raised rates of interest– has dampened property view right here in Singapore,” she explains.
“With the Composite Index sliding beneath the neutral threshold, it is clear that the market is shifting from an expansionary mindset to one of defensive consolidation as companies shift right into a ‘risk-off’ position,” says Qian.
Still, the domestic home industry remains stable, with participants mirroring gauged confidence in the suburban non commercial market. Throughout all real estate segments, suburban residential topped the listing with a positive present web equilibrium and future web equilibrium of +15% each.
Made by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks assumptions and expectations of the real estate industry with quarterly surveys of senior executives in Singapore realty firms.
Nonetheless, sentiment in the prime housing market has actually lightened. Whilst the sector held a positive current final balance of 5% in 1Q2026, the number is a marked decrease from the 41% logged in the former quarter. “The prime residential industry is naturally a lot more sensitive to shifts in global resources and international buyer sentiment,” indicates Qian.
Across commercial and industrial sections, beliefs extensively decreased. The business park and hi-tech room industry led this downturn, publishing a current net equilibrium of -25% and a future net balance of -20%.
