An index that tracks Singapore real estate leaders’ perceptions and expectations over a trailing six-month period stayed flat at 6.1 in 4Q2025, signalling slight optimism against a 10-point scale.
However, an accompanying index that tracks the same executives’ outlook for the next six months declined to 5.5 in 4Q2025 amid escalating global uncertainties, down from the preceding quarter’s 6.0.
Together, a composite sentiment index, the derived indicator for the current overall market sentiment, fell in tandem from 6.1 to 5.8, according to the results of a survey conducted by the National University of Singapore (NUS).
Optimism in the domestic housing market continues to be supported by the prime residential and suburban residential sectors, which have led the market for three consecutive quarters since 2Q2025.
In addition, half of the developers surveyed expect unit prices for new launches to rise moderately over the next six months, according to results released March 10.
“The groundbreaking $1,455 psf ppr bid for the Tanjong Rhu GLS site early last month is among the highest ever received for the Rest of Central Region, and signals strong developer confidence in the purchasing power of homebuyers to continue absorbing quality homes at a premium price point,” says Professor Qian Wenlan, director of the NUS Institute of Real Estate and Urban Studies (IREUS).
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NUS Real Estate, which collectively represents IREUS and the Department of Real Estate (DRE), conducts a quarterly structured questionnaire survey and subsequently publishes the Real Estate Sentiment Index (RESI).
RESI scores range from 0 to 10, reflecting the extent of pessimism or optimism of the survey respondents, and 5.0 represents the neutral score.
Growing caution over the external environment
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Despite the resilient domestic outlook, caution toward external risks has increased amid rising global uncertainties.
The survey respondents identified a slowdown in the global economy as the top risk that could negatively affect market sentiment over the next six months, with nearly 71% highlighting this concern. Risks related to job losses or a weakening domestic economy were also cited by about 53% of respondents.
Qian says Singapore is “particularly vulnerable” to global shifts in trade and politics. “While domestic fundamentals remain strong, the survey points to growing caution over external conditions.”
Survey findings showed that 53% of respondents identified potential job losses and a weakening domestic economy as key risks over the next six months, while 47% pointed to rising construction costs as a concern.
Qian notes that although sentiment in the local market has remained positive, expectations of external risks beyond Singapore’s control have moderated optimism. “Buoyant sentiment at home has been tempered by the anticipation of exogenous risks beyond our control, which may have prompted industry players to pivot away from aggressive growth strategies in favour of more risk-averse approaches, or more conservative ways of raising capital, especially following the pause in interest rate cuts by the US Federal Reserve in January.”
In addition, 47.1% of respondents indicated rising construction costs as a key risk. Concerns about the excessive supply of new property launches were cited by 23.5% of respondents, up from 15% in the previous quarter.
Smaller shares of respondents pointed to risks such as a potential real estate price bubble or speculative activity (18%), as well as rising inflation or interest rates (11.8%).
