Singapore’s commercial real estate market demonstrated robust performance in the second quarter of 2026, according to the latest ETC Digest by Realion (OrangeTee & ETC) Research. Investment sales maintained momentum, reaching a total transaction value of S$15.4b, with expectations to hit S$45 to S$50b by year’s end, barring significant economic disruptions.
Office rents in the Central Region increased by 0.8% quarter-on-quarter, reversing a previous decline. The completion of Shaw Towers contributed to a rise in total office stock, now at 8.2 million square feet. Despite higher costs, demand for premium office spaces remains strong, with significant relocations within the central region.
The industrial sector also saw growth, with rents rising faster than in the first quarter, despite a slight decline in business park rents. This growth is attributed to sustained demand across most property types, except warehouses, amidst geopolitical uncertainties.
Retail leasing demand remained steady, though the island-wide retail occupancy rate dipped slightly to 93.5%. Limited new retail supply is expected to enhance landlords’ pricing power, fostering rental growth.
In the residential market, private home prices marked their seventh consecutive quarter of growth, albeit at a slower pace. The Urban Redevelopment Authority reported a 0.5% increase in the overall price index for private residential properties in Q2 2026. The market anticipates modest price growth of 2.5% to 3.5% for the year, with up to 25,000 private homes expected to be transacted.
The report highlights Singapore’s resilience amid ongoing geopolitical tensions, with the economy growing by 5.7% year-on-year in Q2 2026. Looking ahead, the real estate market is poised for continued growth, supported by stable borrowing costs and strong demand for quality assets.
