NUS RESI Survey: Property Sentiment Turns Pessimistic in Q1 2026 as Inflation Concerns Surge

The survey revealed multiple macroeconomic headwinds dominating industry sentiment. Three-quarters of respondents cited global economic slowdown as the top concern, while 65 per cent worried about rising construction costs and 60 per cent feared job losses or domestic economic decline. The Middle East crisis, energy cost pressures, persistent inflation and elevated interest rates all weighed heavily on outlook.

Inflation and interest rate concerns saw a dramatic surge, with 80 per cent of respondents flagging these as worries in Q1, a sharp jump from just 11.8 per cent in the previous quarter. The overall Composite Sentiment Index dipped below 5.0 for the first time in recent quarters, marking a shift from expansion-minded thinking to a defensive, risk-averse posture.

Residential: Suburban (mass-market) private homes outside the Core Central Region remained the most stable segment, maintaining a 15 per cent net balance for both current and future outlooks, anchored by steady domestic homebuyer demand. However, prime residential weakened significantly to a 5 per cent current net balance from 41 per cent in the prior quarter, reflecting heightened sensitivity to global capital flows and international buyer sentiment.

Commercial and industrial: Business parks and high-tech spaces showed the most pronounced deterioration, with a minus 25 per cent current net balance and minus 20 per cent future outlook. Office sentiment completely reversed from the prior quarter’s 12 per cent positive balance to neutral at 0 per cent.

Retail: Suburban retail dropped sharply to minus 15 per cent, worsening by 15 percentage points in Q1 following a 12-percentage-point decline in Q4. Prime retail continued its decline.

Hospitality: Hotels and serviced apartments were deeply bearish at 15 per cent and 25 per cent respectively.

Developers are split on pricing strategy going forward. Half lean toward moderately higher prices over the next six months, while 90 per cent expressed concern about both building materials and land costs. The CCR (Core Central Region) showed persistent pessimism at 15 percentage points, with a similarly bleak six-month outlook.