Property market turns pessimistic amid Middle East crisis: NUS
Professor Qian Wenlan, director of the NUS Ireus, associates the pessimistic move in the industry to macroeconomic headwinds stemming from the conflict occurring in the Middle East. “The continuous crisis in the Middle East– with its plunging effects on climbing power costs, consistent inflation, and elevated rates of interest– has dampened property view below in Singapore,” she explains.
Survey results shown 50% of developers expect higher prices for new property launches for the following six months, whilst 60% forecast start quantities to hold firm, sustained by durable customer need.
Offices fared relatively much better. While the market’s present net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a constrained upcoming supply pipeline are anticipated to strengthen this segment, mirrored in a favorable future overview of +15%.
Both the current and future view indices tumbled in 1Q2026. The former contracted to 4.9 from the past quarter’s 6.1. The last slipped to 5.0 from 5.5 in the preceding quarter.
“With the Composite Index sliding beneath the neutral limit, it is clear that the industry is changing from an expansionary mindset to among defensive consolidation as services change into a ‘risk-off’ standpoint,” states Qian.
Across commercial and industrial sectors, beliefs extensively declined. The business park and hi-tech room industry led this downturn, publishing a current web equilibrium of -25% and a future net balance of -20%.
Global political headwinds are casting a shadow over Singapore’s real property market, according to the latest Real Estate 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.
It makes up a Current Sentiment Index and a Future Sentiment Index, which monitor adjustments over the prior six months and the next six months, respectively. Scores from both of these indices are accumulated to derive a Composite Index, which suggests total market belief.
Still, the domestic houses industry stays secure, with participants reflecting measured assurance in the country non commercial market. Throughout all real estate segments, suburban non commercial covered the list with a positive current internet balance and future web balance of +15% each.
Sentiment also dropped 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, whilst the hotel and serviced apartment segment had a present net equity of -15%.
Nevertheless, belief in the prime housing market has relaxed. While the segment secured a favorable current net balance of 5% in 1Q2026, the number is a marked decline from the 41% logged in the last quarter. “The prime residential sector is naturally much more conscious changes in global resources and global buyer sentiment,” notes Qian.
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 property industry with quarterly questionnaires of senior executives in Singapore real estate business.
