Singapore housing market set for steady performance in 2026
A market in balance after a solid year
Singapore’s private housing market is entering 2026 on stable footing, supported by moderating price growth, resilient sales momentum and easing borrowing costs. According to Kelvin Fong, Chief Executive Officer of PropNex Realty, market conditions point to a well-balanced environment following a relatively strong performance in 2025.
While private home sales strengthened last year, price growth remained contained and rental values recovered modestly amid healthy leasing demand. This combination suggests the market has entered a “Goldilocks” phase — neither overheated nor subdued — reflecting developers’ disciplined pricing strategies and their focus on achieving sustainable take-up rates in a value-conscious environment.
Singapore housing market: Lower interest rates boost affordability
Looking ahead, Fong expects the stability seen in 2025 to carry into 2026, underpinned by a more favourable interest rate environment. As of late January 2026, the three-month compounded SORA stood at around 1.14% per annum, its lowest level since mid-2022.
This has translated into significantly cheaper mortgage financing, with two-year fixed-rate home loans now available at roughly 1.4% to 1.5% per annum, compared with rates above 4% at the end of 2022. Lower borrowing costs are easing debt-servicing pressures and improving affordability for prospective buyers.
Low sub-sales signal healthier demand on Singapore real estate market
Speculative activity remains subdued, reinforcing market stability. Sub-sales accounted for just 3.4% of total transactions in the fourth quarter of 2025, among the lowest proportions recorded in recent years. For the full year, sub-sales declined to 1,055 transactions, down sharply from previous years.
According to Fong, this trend indicates that demand is increasingly driven by owner-occupiers and long-term investors rather than short-term speculation. The decline may also reflect stronger holding power among buyers and reduced financing stress as interest rates fall.
Tight unsold inventory supports prices
Supply conditions are also supportive. At the end of the fourth quarter of 2025, there were 14,859 unsold, uncompleted private homes in the pipeline, excluding executive condominiums. This marked the lowest level in 15 quarters and represented a notable quarter-on-quarter decline.
Based on historical sales averages, the existing unsold inventory could be absorbed within roughly two years, helping to underpin price stability and reduce downside risks.
Launch pipeline and 2026 outlook
Around 8,800 private homes from 23 projects, along with approximately 2,300 executive condominium units, are expected to be launched in 2026. Against this backdrop, PropNex projects developers’ sales to range between 8,000 and 9,000 units, likely toward the upper end of the forecast.
Private resale volumes are expected to reach about 14,000 to 15,000 units, while private home prices are projected to rise moderately by 3% to 4% for the year. With resale price growth in the public housing market flattening, some HDB owners may view 2026 as an opportune time to upgrade to private homes amid stabilising private residential prices.
As International Investment experts report: Singapore’s housing market in 2026 is positioned for continued stability rather than volatility. Lower interest rates, disciplined supply and structurally healthier demand are likely to sustain confidence among both homebuyers and long-term investors.