Private home prices in Singapore experienced a modest increase in the first quarter of 2026, whilst sales activity saw a decline, according to the latest data from the Urban Redevelopment Authority (URA). The overall price index for private residential properties rose by 0.9%, reflecting a cautious sentiment among buyers amidst macroeconomic uncertainties and rising interest rates.
Sales of private homes, excluding executive condominiums (ECs), fell for the second consecutive quarter, with a total of 5,413 units sold in Q1 2026. New sales saw the most significant drop, decreasing by 31.5% quarter-on-quarter, attributed to fewer project launches during the Chinese New Year period. Resale volumes also dipped by 8.6%, marking the lowest quarterly resale volume in two years.
Despite the overall slowdown, certain market segments performed well, including new homes in attractive locations and suburban homes with accessible price points. Notably, developments like Rivelle@Tampines and Pinery Residences sold over 90% of their units within the first weekend.
Rental prices showed a slight rebound, increasing by 0.3% after a previous decline. However, the private rental market faces challenges due to potential rate hikes and macroeconomic pressures, particularly affecting expatriate tenants. Nonetheless, emerging sectors such as AI are expected to bring an influx of expatriates, potentially stabilising rental demand.
Looking ahead, the property market’s trajectory remains uncertain, with geopolitical tensions in the Middle East potentially influencing costs and interest rates. However, upcoming launches like Vela Bay and Tengah Garden Residences are anticipated to bolster new home sales in the second quarter. Realion (OrangeTee & ETC) Group projects private residential prices to grow by 2.5% to 4.5% in 2026, with 23,500 to 25,500 transactions expected for the year.
