Property market turns pessimistic amid Middle East crisis: NUS
Workplaces fared reasonably much better. While the sector’s present net balance slid to 0% from the 12% in 4Q2025, low Grade A vacancy and a limited upcoming supply pipeline are expected to bolster this section, mirrored in a favorable future overview of +15%.
However, belief in the top residential market has relaxed. While the segment secured a favorable current net balance of 5% in 1Q2026, the number is a labeled decline from the 41% logged in the former quarter. “The prime residential industry is naturally more conscious shifts in global resources and global buyer notion,” mentions Qian.
Throughout commercial and industrial sectors, beliefs generally declined. The business park and hi-tech space industry led this downturn, uploading an existing internet balance of -25% and a future net balance of -20%.
Produced by NUS’ Department of Real Estate and Institute of Real Estate and Urban Studies (Ireus), the Resi tracks perceptions and assumptions of the real estate industry with quarterly studies of top execs in Singapore real estate companies.
“With the Composite Index sliding beneath the neutral limit, it is clear that the market is changing from an expansionary mindset to among defensive consolidation as services change into a ‘risk-off’ position,” says Qian.
Global political headwinds are casting a shadow over Singapore’s realty market, according to the most up to date Real Estate 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 makes up a Current Sentiment Index and a Future Sentiment Index, which track modifications over the prior 6 months and the following six months, specifically. Scores from both of these indices are accumulated to derive a Composite Index, which shows total market sentiment.
Narra Residences Santarli Realty and Apex Asia
Belief also dropped in the retail and hospitality real estate markets. The prime retail and suburban retail sectors logged current net balances of -20% and -15% for 1Q2026, while the hotel and serviced apartment segment had a current net balance of -15%.
Teacher Qian Wenlan, supervisor of the NUS Ireus, connects the depressed move in the market to macroeconomic headwinds stemming from the problem occurring in the Middle East. “The continuous situation in the Middle East– with its plunging impacts on growing power prices, consistent inflation, and raised rates of interest– has dampened property view here in Singapore,” she explains.
Both the present 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.
Still, the residential home industry stays stable, with respondents reflecting gauged trust in the rural residential market. Across all realty sectors, country non commercial topped the list with a positive current web equilibrium and future web equilibrium of +15% each.
Study results shown 50% of developers expect greater rates for brand-new property launches for the following six months, whilst 60% anticipate start volumes to hold firm, sustained by durable customer need.
