Monday Wrap: Property cooling, retail caution, and tariff risks

Hiring sentiment softens as financial resilience falls and AI reshapes labour demand.

Last week in Singapore Business Review, HDB resale volume fell 6.3% year-on-year (YoY) despite a pickup in transactions from April, whilst higher energy costs and softer tourism weighed on the retail outlook, and UOB warned that new US tariffs could raise risks for Singapore’s trade and chip sectors.

HDB resale volume fell 6.3% YoY in May despite a 10.1% increase from April, as transaction levels remained below 2025 highs.

Retail sales continued to grow in April, but analysts warned that higher energy costs, softer tourism demand, and weaker consumer spending could slow momentum later this year.

UOB warned that proposed US tariffs may have a limited immediate impact on Singapore, but could pose growing risks to trade, logistics, and semiconductor exports as the US expands its tariff framework.

Singapore shares held firm in early June, with DBS expecting a July rebound as strong exports and safe-haven demand offset geopolitical uncertainty and oil market risks.

Hiring sentiment fell to its lowest level since 2021, but employers remain willing to pay a premium for workers with AI and other high-demand digital skills.

Financial resilience in Singapore weakened sharply in 2026, with the share of highly resilient households falling to 21% as rising living costs strained budgets across all income groups.

HDB million-dollar resale flats rose to 166 units in May, lifting their share to 7.8% as activity rebounded within a relatively stable range seen over the past year.