Singapore's Residential Property Market Analysis 2026

Resilient local buyer demand supported by interest rates falling to their lowest level in several years sustains sales moderate price growth in the Singaporean private housing market, while rental inflation stabilizes at modest levels.

This extended overview from Global Property Guide covers key aspects of the Singaporean housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Property Prices and Price Index
• Property Demand Trends
• Property Supply Trends
• Rental Market: Rents and Rental Yields
• Mortgage Market and Interest Rates
• Economic and Social Factors

Property Prices and Price Index

Private residential prices in Singapore continued to rise in Q1 2026 despite softer transaction activity, supported by firm take-up at selected new launches, resilient local buyer demand, and still-contained unsold inventory. Based on the Urban Redevelopment Authority (URA) Property Price Index, prices for all private residential properties increased by 0.88% quarter-on-quarter and 3.41% year-on-year.

Singapore's house price annual change:

The landed segment (privately owned standalone terrace houses, semi-detached houses, bungalows, and shophouses) softened after a strong performance in the previous quarter. Prices of landed homes fell by 0.40% quarter-on-quarter in Q1 2026, reversing the 3.4% increase recorded in Q4 2025, although they remained 6.73% higher year-on-year. The real estate brokerage PropNex attributed the quarterly decline partly to lower landed sales and a mismatch in price expectations between buyers and sellers, while ERA brokerage described the landed market as a near-term “pricing stand-off”, with sellers holding firm and buyers turning more cautious.

Price growth was instead driven by the non-landed segment (strata-titled private condominiums), where prices rose by 1.30% quarter-on-quarter and 2.63% year-on-year. The strongest performance was recorded in the Outside Central Region (OCR), reflecting strong take-up at selected suburban launches. ERA linked the OCR’s outperformance to robust sales at Pinery Residences, which achieved high take-up at benchmark prices for Tampines. Price growth in the central submarkets was more moderate, although the Core Central Region (CCR) benefited from the positive reception for Newport Residences and River Modern.

Property Price Index of Private Residential Properties, quarterly vs annual movement:

The new-sale market continued to show a clear regional price hierarchy. Average prices were highest in the CCR, followed by the Rest of Central Region (RCR) and the OCR, reflecting the established pricing premium of prime locations. New-sale prices remained more sensitive to the timing, location, and positioning of individual launches, while resale prices were comparatively steadier, reflecting more established pricing in the secondary market.

Private residential sales prices by region and transaction type:

Market expectations for 2026 remain broadly positive, but point to the moderation of price growth. Most major agencies expect private residential prices to rise in the low- to mid-single digits, with CBRE and Cushman & Wakefield forecasting growth of 2% to 4%, OrangeTee/Realion projecting 2.5% to 4.5%, PropNex expecting 3% to 4%, and ERA slightly higher at 3% to 5%. Overall, the outlook is supported by local owner-occupier demand, lower mortgage rates, healthy household balance sheets, and limited unsold inventory, while geopolitical uncertainty, higher energy prices, inflation risks, and any labor market deterioration remain the main downside risks.

In the public housing market, price momentum cooled more visibly. The Housing and Development Board (HDB) Resale Price Index fell by 0.10% quarter-on-quarter in Q1 2026, marking the first quarterly decline since Q2 2019, although prices remained 1.19% higher year-on-year. The HDB plays a central role in Singapore’s housing landscape, developing and managing residential estates to ensure affordability for citizens. Ownership is restricted to Singaporeans and eligible permanent residents, with a minimum occupation period of five years before resale. As of 2025, HDB flats accommodated 77.2% of resident households, according to the Singapore Department of Statistics (DOS).

Property Demand Trends

Launch-Led Momentum Moderates, but Domestic Demand Holds Firm

Singapore’s private residential demand strengthened markedly in 2025, supported by stronger new-home sales, resilient resale activity, and sustained local buyer confidence. Total private residential transactions, excluding executive condominiums, reached 26,492 units, up 20.69% year-on-year and marking the highest annual volume in four years. The recovery was led mainly by the primary market, where developer sales rose 67.18% year-on-year to 10,815 units, while resale transactions increased more moderately by 4.05% to 14,622 units.

However, activity softened at the start of 2026. According to URA data, 5,413 private residential units were transacted in Q1 2026, down 25.45% year-on-year. ERA attributed the moderation to fewer project launches, the Lunar New Year lull, and heightened global uncertainty, rather than a broad weakening in demand. Marcus Chu, Chief Executive Officer of ERA, noted that after the “bumper crop of new launches” in late 2025, the market saw a more moderate start to 2026 due to “a lower volume of launches” and geopolitical uncertainty. ERA further emphasized that the slowdown was “not a sign of weakening demand,” but reflected a more selective buyer market.

Data Source: URA.

The moderation was most visible in the primary market, where new private home sales declined 40.36% year-on-year to 2,013 units (37% of the total) in Q1 2026. Resale activity also softened, with transactions falling 9.54% year-on-year to 3,225 units, but the segment still accounted for 60% of total private residential sales, confirming its role as the main source of market liquidity. Sub-sales remained limited at 175 units, down 45.48% year-on-year and representing only 3% of total activity. PropNex noted that this was the fourth consecutive quarterly decline in sub-sales, suggesting that most owners are holding for the longer term and that speculative activity remains contained.

Regionally, demand remained concentrated in the Outside Central Region (OCR), which accounted for around half of all private residential transactions in Q1 2026. The Rest of Central Region (RCR) represented 26%, while the Core Central Region (CCR) contributed around 24%. The CCR was the only region to record a year-on-year increase in total sales, rising from 901 units in Q1 2025 to 1,313 units in Q1 2026, supported by stronger primary-market activity at selected projects.

Number of residential units sold by submarket:

Singapore’s private residential demand remains overwhelmingly domestic. Under the current Additional Buyer’s Stamp Duty framework, foreigners buying any residential property are subject to a 60% ABSD, while Singapore citizens pay no ABSD on their first residential property, and permanent residents pay 5%. ERA noted that more than 98.6% of residential property transactions in 2025 were made by Singapore citizens and permanent residents, with foreign demand remaining subdued due to the high ABSD burden.

Local upgrader demand also remains an important support factor. In Singapore, this includes households moving from HDB flats into private homes, as well as eligible buyers purchasing executive condominiums, which are privately developed but sold under HDB eligibility rules. This upgrader channel remained active in Q1 2026, with developers selling 1,168 EC units, up 40.72% year-on-year and the strongest quarterly EC sales volume in more than eight years.

Looking ahead, demand is expected to remain healthy but more measured than in 2025. CBRE Research projects 7,500 to 8,500 new private homes to be sold in 2026, supported by attractive launches, healthy household balance sheets, and low mortgage rates, barring major economic shocks. The consultancy expects interest to remain firm for well-located projects, including upcoming OCR launches such as Vela Bay in Bayshore and Tengah Garden Residence in Tengah. PropNex expects developer sales to hover around 9,000 units, with resale transactions projected at 14,000 to 15,000 units. Knight Frank is also broadly positive, expecting new home sales to track between 8,000 and 10,000 units for the full year, although it cautions that higher energy prices, inflationary pressures, and any spillover into the labour market could weaken buyer sentiment.

Property Supply Trends

New Supply Normalizes After an Active 2025

After an exceptionally active 2025, Singapore’s private residential supply expansion moderated at the start of 2026. Developers launched 11,482 uncompleted private residential units, excluding executive condominiums, in 2025, up 72.74% year-on-year, as the market saw a much stronger flow of new projects after the relatively subdued 2024 launch pipeline. In Q1 2026, launch activity fell back to 1,844 units, down 41.26% year-on-year, reflecting a lighter release schedule.

Data Source: URA.

The first-quarter launch profile was also highly concentrated geographically. Of the units launched in Q1 2026, 1,143 units, or 62.0%, were in the Outside Central Region, while 701 units, or 38.0%, were in the Core Central Region. No new private residential units were launched in the Rest of Central Region during the quarter. Key OCR launches included Narra Residences in Dairy Farm Walk and Pinery Residences in Tampines, while CCR launches included Newport Residences in Anson Road and River Modern in River Valley.

Uncompleted private residential units launched by submarket:

Despite the slower quarterly launch volume, available inventory remained relatively contained by historical standards. Total unsold private residential inventory, excluding executive condominiums, increased by 8.08% quarter-on-quarter to 16,219 units in Q1 2026, of which 16,095 units were from uncompleted projects with planning approvals, and only 124 units were in completed licensed projects. On a year-on-year basis, total unsold inventory was still down by 11.23% from 18,270 units in Q1 2025 and remained far below the previous peak of 37,799 units recorded in Q1 2019.

This relatively low inventory base continues to support developer confidence, although cost pressures may temper land-bidding appetite. Cushman & Wakefield noted that healthy new-launch take-up and low unsold inventory have underpinned developers’ appetite for land banking, with unsold stock remaining below the ten-year annual average of 21,498 units. At the same time, the consultancy cautioned that potential increases in construction costs could make developers more selective when bidding for future sites.

Data Source: URA.

The broader completion pipeline remains substantial, although it should not be interpreted as immediately available inventory, as it includes both sold and unsold units. According to the URA, around 55,800 private residential units and executive condominiums are expected to be completed over the coming years. Near-term delivery is expected to remain moderate, with 5,883 units scheduled for completion during the remainder of 2026 and 9,753 units in 2027.

Overall, Singapore’s private residential supply position remains balanced. The sharp rise in 2025 launches helped replenish buyer choice, while the lighter Q1 2026 launch volume, still-contained unsold inventory, and continued government land supply point to a market where new supply is being added gradually. This should help support market stability, although the pace and pricing of future launches will remain sensitive to construction costs, land prices, and buyer absorption.

Note: Total number of units to be delivered within the projects, including both sold and unsold units.
Data Source: URA.

Rental Market: Rents and Rental Yields

Rental Growth Stabilizing at Modest Levels

Throughout 2025 and early 2026, rental inflation in Singapore appears to have stabilized, with the Rental Index of Private Sector Residential Properties from the URA now posting modest yet consistent growth for five consecutive quarters.

Singapore's rent price index:

In Q1 2026, the island-wide private rental index recorded a 1.8% year-on-year growth, with the index for landed properties increasing by 0.2% and the index for non-landed properties by 2.2%. The regional dynamic for non-landed properties varied, with the index posting a slightly stronger annual increase in the CCR (2.6%) than in the OCR (1.6%) and the RCR (2.2%).

Data Source: URA.

Rental Index of Private Sector Residential Properties, quarterly and annual movement:

In nominal terms, the research carried out by Global Property Guide in November 2025 showed the average advertised rent for residential units in Singapore standing at USD 2,818 for 1-bedroom units, USD 3,828 for 2-bedroom units, and USD 5,661 for 3-bedroom units. The corresponding gross rental yields averaged 3.13% (down from 3.41% previously reported in November 2024), with only marginal variation among the monitored submarkets.

Rents in the high-end segment of non-landed private residential projects tracked by Savills reached SGD 6.05 (USD 4.67) per square foot in Q4 2025, now also rising at a much slower pace than before.

Overall, commenting on recent developments, analysts from Savills note that across market segments, islandwide rents for non-landed private residential properties have been under downward pressure, reflecting a sizeable stock of vacant leasable units and a slower inflow of expatriates and international students.

At the same time, as Alan Cheong from Savills Research points out, manageable levels of new completions and current vacancy numbers (below the 6.5% threshold associated with a softening in rental growth) are likely to support rents in 2026 despite weaker expatriate demand. As new residential completions this year are expected to remain in line with last year’s relatively low supply, rents for non-landed private residential properties are forecast to remain broadly flat in 2026, with leasing activity likely to be supported by local households and permanent residents who need interim accommodation while awaiting the completion of homes scheduled for delivery over the next few years.

Mortgage Market and Interest Rates

Interest Rates Likely Bottomed Out, Lending Activity Growing

Unlike most central banks, the Monetary Authority of Singapore (MAS) does not conduct monetary policy by adjusting domestic interest rates; rather, it uses the Singapore dollar nominal effective exchange rate (S$NEER), based on a weighted basket of currencies from major trading partners, as its primary intervention tool.

This approach makes Singapore’s interest rates dependent on global markets and, more specifically, on the US market. The Singapore Overnight Rate Average ( SORA), which has been gradually replacing the Singapore Inter-Bank Offered Rate (SIBOR) as the main lending benchmark and basis for new floating-rate mortgages since 2019, tends to move in tandem with the US Federal Funds Target Range (FFTR), typically trending below it.

Along with the gradual monetary policy relaxation by the US Federal Reserve, the indicator remained on a downward trajectory in the second half of 2025 and early 2026, with the 3-month Compounded SORA most recently reported by the MAS at 1.0% in April 2026. Earlier, local experts already projected SORA, and, consequently, interest rates on individual loan products in Singapore to bottom out in Q2 2026, and with further cuts by the Federal Reserve now expected to be postponed until the very end of the year or even pushed to 2027, the market consensus is that SORA is likely to stabilize over the coming quarters and could start drifting upwards if the US rates stay oh hold longer.

Data Sources: MAS, FRED.

Banks in Singapore typically offer floating-rate mortgages with interest calculated as 1-month or 3-month Compounded SORA plus bank spread of up to 1% and fixed-rate mortgages with a 1- to 3-year lock-in period (after which the rate switches to SORA plus bank spread). Thus, a decline in SORA led to interest rates on home loans also falling substantially since 2024.

According to the information on individual loan products accumulated by Redbrick Mortgage Advisory, at the time of research in May 2026, fixed-rate mortgages were offered by banks at best rates of between 1.4% and 3.3% during the locked period, while best-offer net interest on floating-rate mortgages ranged from 1.3% to 2.1% during the locked period. With bank mortgage packages now generally cheaper than the Housing and Development Board (HDB) concessionary loan rate (2.6%), many HDB homeowners in Singapore move to refinance their mortgages with bank loans, The Straits Times reports.

Data Source: MAS.

With interest rates at their lowest levels in several years, lending activity in Singapore continued to recover after two years of annual declines in new housing loans granted. Based on figures published by the MAS, the combined value of loan limits granted for owner-occupied and investment properties in 2024 expanded by 15.3%, compared to 2023. This upward trend continued in 2025, with limits granted up to SGD 46.7 billion (USD 35.8 billion) for owner-occupied properties and SGD 8.9 billion (USD 6.8 billion) for investment properties, resulting in a further 9.1% year-on-year increase in their combined value, which, nonetheless, still remained below its 2021 peak level of SGD 57.2 billion.

In this environment, the total amount of outstanding housing loans in Singapore posted a more pronounced 4.7% growth in 2025, compared to a 1.7% expansion in 2024. At the end of last year, the combined housing loan stock stood at SGD 236.5 billion (USD 181.0 billion), nearly 81% of that amount represented by loans on owner-occupied properties, which drove the market expansion (+5.4% year-on-year), while loans on investment properties represented about 19% of the stock and demonstrated a more moderate growth (+2.0% year-on-year).

Sized against the Singaporean economy, the residential mortgage market was equivalent to an estimated 30.0% of GDP at current prices in 2024, down from its peak of 45.3% in 2014. Based on the latest reporting from the DOS, mortgages represent 71.7% of total household debt, of which 60.3% are loans from financial institutions and 11.5% loans from the HDB, which provides loan options with lower downpayment and higher loan-to-value ratio to qualifying Singaporean nationals.

Data Sources: MAS, DOS.

Economic and Social Factors

AI-Boom Sustains Growth, Outlook Clouded by Geopolitical Developments

Sustained by the global boom in artificial intelligence (AI) investments and strong semiconductor demand, Singapore demonstrates above-potential performance, with real GDP growth reaching 5.3% in 2024 and 5.0% in 2025. While the economy is expected to continue benefiting from AI-related demand, elevated global operational costs and geopolitical tensions currently weigh on expansion prospects. The International Monetary Fund (IMF) forecasts a slowdown in growth to 3.5% in 2026 and 2.7% in 2027. Similarly, the latest macroeconomic review from the MAS projects growth to step down to a range of 2-4% this year.

“Overall, risks to growth are tilted to the downside, particularly if the fallout of the energy crisis becomes prolonged,” said the MAS.

The consumer price index (CPI) inflation in the country previously eased from an average annual level of 2.4% in 2024 to 0.9% in 2025, but has re-accelerated in recent months, reported at 1.8% in March 2026. According to the MAS analysis, while domestic cost drivers should remain contained in the near term, “external cost pressures are turning sharply inflationary” as a result of the Middle East conflict, lifting the inflation forecast for the year to 1.5–2.5%, which is in line with the IMF projection of 2.3%.

Data Source: IMF.

In the Singaporean labor market, the total seasonally adjusted unemployment rate remains low, reported by the DOS at 2.1% in Q1 2026. Resident unemployment (including Singaporean citizens and permanent residents) continued to trend slightly higher at 2.9% during the same period. As of 2025, citizens and permanent residents make up 60.4% of the total labor force in the country, with the remaining 39.6% represented by non-resident foreign workers.

According to the MAS, labor demand (and consequently nominal wage growth) in the country could moderate this year, as firms become more cautious in their headcount expansion amid growing uncertainties and softening economic outlook. “With the anticipated slowing of the economy, employment growth is expected to ease from the gains in 2025, with non-resident employment growth adjusting in tandem,” said the macroeconomic review from the authority.

Data Source: DOS.

In general, Singapore remains exposed to shifts in global trade policy and demand as well as disruptions to global supply chains. The impact from the Middle East conflict is expected to weigh on economic activity in the country in the coming quarters, although the extent of this impact is uncertain given the evolving developments.

At the same time, the economy’s fundamental strengths, including high fiscal reserves, budget surpluses, positive net international investment position, and a favorable business environment, are expected to mitigate its vulnerability to external shocks. In April 2026, Fitch Ratings affirmed Singapore’s 'AAA' standing with a stable outlook.

Sources:

1. Monetary Authority of Singapore (MAS)
   1. Statistics: https://www.mas.gov.sg/
   2. Monetary Policy Framework: https://www.mas.gov.sg/
   3. Monthly Statistical Bulletin: https://www.mas.gov.sg/
   4. Macroeconomic Review, April 2026: https://www.mas.gov.sg/
2. Singapore Department of Statistics (DOS)
   1. National Accounts: https://www.singstat.gov.sg/
   2. Prices and Price Indices: https://www.singstat.gov.sg/
   3. Labor, Employment, Wages & Productivity: https://www.singstat.gov.sg/
   4. Household Sector Balance Sheet: https://www.singstat.gov.sg/
   5. Statistics on Resident Households: https://www.singstat.gov.sg/
3. Ministry of Manpower
   1. Labor Force in Singapore 2025: https://stats.mom.gov.sg/
4. Urban Development Authority (URA)
   1. Release of 1st Quarter 2026 Real Estate Statistics: https://www.ura.gov.sg/
   2. Release of 4th Quarter 2025 Real Estate Statistics: https://www.ura.gov.sg/
5. Housing and Development Board (HDB)
   1. 1st Quarter 2026 Public Housing Data and Upcoming Flat Supply: https://www.hdb.gov.sg/
   2. Flat and Grant Eligibility: https://www.hdb.gov.sg/
6. Inland Revenue Authority of Singapore (IRAS)
   1. Additional Buyer's Stamp Duty (ABSD): https://www.iras.gov.sg/
7. International Monetary Fund (IMF)
   1. Country Overview: Singapore: https://www.imf.org/
   2. 2025 Article IV Staff Report: https://www.imf.org/
8. Federal Reserve Economic Data (FRED)
   1. Federal Funds Target Range — Upper Limit: https://fred.stlouisfed.org/
9. Knight Frank
   1. Singapore Residential Market Update — Q1 2026: https://www.knightfrank.com.sg/
10. Cushman & Wakefield
    1. Comments on URA Real Estate Statistics for Q1 2026: https://www.cushmanwakefield.com/
11. Savills
    1. Singapore Residential Leasing Q4 2025: https://pdf.savills.asia/
12. CBRE
    1. Commentary on URA Q1 2026 Statistics – Office, Retail, and Residential: https://www.cbre.com.sg/
13. Redbrick Mortgage Advisory
    1. What is the Best Home Loan in Singapore?: https://www.redbrick.sg/
14. PropNex
    1. Q1 2026 Residential Report: https://www.propnex.com/
    2. Shifting Market Dynamics As Private Home Prices Edge Up…: https://www.propnex.com/
    3. Top Scoop: 2026 Property Market Outlook with Ismail Gafoor and Kelvin Fong: https://www.propnex.com/
15. OrangeTee
    1. Q1 2026 Private Residential Sales: https://www.orangetee.com/
    2. Realion (OrangeTee & ETC) | Comments on URA's Q1 2026 Real Estate Statistics: https://www.orangetee.com/
16. ERA Real Estate
    1. 1Q 2026 URA Real Estate Statistics: Transactions Moderate to Start 2026 Amid Global Uncertainty: https://www.era.com.sg/
    2. Singapore's Private Residential Market: How 2025 Made It Great Again!: https://www.era.com.sg/
17. 99.co
    1. Full List of New Condo Launches in 2026: https://www.99.co/
18. Fitch Ratings
    1. Fitch Affirms Singapore at 'AAA'; Outlook Stable: https://www.fitchratings.com/
19. Reuters
    1. BofA and Goldman Push Back Fed Rate-Cut Expectations on Inflation Risks, Jobs Data: https://www.reuters.com/
20. The Straits Times
    1. S’pore Interest Rates Could Bottom Out in Second Quarter of 2026: UOB: https://www.straitstimes.com/
    2. More HDB Flat Owners Refinancing to Cheaper Bank Loans as Interest Rates Drop to 3-Year Low: https://www.straitstimes.com/
    3. Singapore Lifts 2026 Growth Forecast to 2%-4% on AI Outlook After Economy Outperforms in 2025: https://www.straitstimes.com/