Real estate sentiment up in Q2, NUS index hits 5.7

Prime residential properties recorded the highest current net balance at 35%.

Sentiment in Singapore’s real estate sector strengthened in the second quarter of 2025 (Q2 2025), rising to 5.7, according to the National University of Singapore’s Real Estate Sentiment Index.

Prime residential properties recorded the highest current net balance at 35%, followed by suburban residential (27%) and hotels/serviced apartments (8%).

Suburban retail stayed flat at -4%. Industrial/logistics improved to -8% from -25%, whilst the office sector recovered slightly to -12% from -25%.

In contrast, prime retail slipped to -23% from -17%, and business park/hi-tech space remained the weakest at -31%, down from -25%.

Looking ahead, the Future Sentiment Index also climbed to 5.7.

Suburban residential showed the largest swing, jumping to 27% from -25% last quarter.

Prime residential followed at 23%, with hotels/serviced apartments at 8%. Office and suburban retail both registered 4%.

Industrial/logistics narrowed losses to -4% from -46%, whilst prime retail moved to -8% from -54%.

Business park/hi-tech space remained negative at -12% but improved from -33%.

A slowdown (decline) in the global economy was the top potential risk that may adversely impact sentiments over the next six months, with 80.8% of respondents indicating so in the Q2 2025 survey, a decrease from 87.5% in Q1 2025.

Domestic job losses or economic weakness were flagged by 73.1%, up from 70.8%. Half raised concerns about rising construction costs, whilst 42.3% pointed to possible government cooling measures, up from 29.2%.

Other risks included inflation and interest rates (23.1%), excessive new supply (19.2%), a property price bubble (19.2%), additional land supply (15.4%) and tighter financing conditions (15.4%).