Property Market Sentiment Plummets 1Q2025 Wake Trump Tariffs
According to the latest Real Estate Sentiment Index (RESI) report from the National University of Singapore (NUS), Singapore’s property market sentiment has taken a hit following the announcement of sweeping tariffs by the Trump administration. The quarterly report provides an alternative measure of the private real estate market’s performance by collecting responses from senior executives of real estate firms.
The sentiment index, which was on an upward trend for five consecutive quarters since 3Q2023, dropped from 6.0 in 4Q2024 to 4.3 in 1Q2025. This decline has been attributed to the increase in costs for businesses and consumers due to tariffs. Professor Qian Wenlan, director of the NUS Institute of Real Estate and Urban Studies (IREUS), explains that a trade-dependent economy like Singapore’s is particularly vulnerable to elevated costs, especially as the US is one of its top trading partners.
The top concern among survey respondents was the fear of a global economic slowdown, with 88% citing it as a top risk, up from 70.4% in 4Q2024. This was followed closely by job losses and a decline in the domestic economy. The fear of the tariffs’ impact on the local economy also saw a significant jump, rising from 29.6% in 4Q2024 to 70.8% in 1Q2025.
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In terms of specific property sectors, industrial and logistics properties saw the sharpest decline in sentiment, with a 36-point swing from an 11% positive outlook in 4Q2024 to a 25% negative outlook in 1Q2025. The office sector also saw a drop of 18 points, going from a 7% negative outlook to a less optimistic 25% negative outlook.
Qian explains that a weaker business environment will inevitably have a spillover effect on the property sector, resulting in a decline in sentiment across the board. However, he also adds that it is still too early to predict the long-term impact of the tariffs on the global economy, as trade negotiations are still ongoing.