Summary
- Buyer demand has been healthy, supported by declining interest rates and large-scale government plans
- Supply is low, resulting in low vacancy rates and low availability of product, which is feeding into support for rents and prices
- Singapore private residential property prices are expected to rise similarly to historical trends in 2026, meaning about 2 to 4% for the whole year.
Recap
First a recap of how Singapore’s property prices have moved over the years.
The chart below shows the property price index across the island, OCR, RCR and CCR.
Prices have grown strongly over the last 5 years, especially through the COVID period, which was a seeming anomaly.
Who would have thought that a health crisis could have such a far-reaching impact on property prices.
In hindsight, we now know that because of an increase in the cost of raw materials (concrete, steel etc.) and labour, that has translated into a higher price for the end product, in this case the physical property product.
Will there continue to be an increase in property prices?
Given the balance of factors that will be examined in some detail below, there is likely to be a continuation of price growth of between 2-4% in 2026.
Between 1975 and 2025, Singapore’s islandwide property prices have grown by a compound annual growth rate of 6.2%.
Between 2000 and 2025, the compound annual growth rate has fallen to a healthy 3%.
The decline in compound annual growth rate is not to be mistaken for a weak property market, but rather one that reflects a maturing, healthy, and stable environment.
The main reason for lower growth is Singapore’s economic growth, which has transitioned to a lower and more stable level.
Without further ado, I lay out the thinking behind how the property market is likely to develop in 2026.
To systematically approach the forward view, I look individually at each component that has a link with price.
These factors have either a direct or indirect link.
Demand / sales
In terms of demand for private non-landed residential projects, there was a recent uptick in volume at the end of 2024 and the beginning of 2025.
This healthy sentiment was helped partly by the decrease in interest rates that came down from about 3% in 2023 and 2024 to approximately 1% as of the time of this writing at the end of December 2025.
At the same time, numerous government plans such as the Greater Southern Waterfront, Paya Lebar Airbase, Jurong Region MRT line, Circle Line completion, Bukit Timah Turf Club redevelopment, among others, catalyzed the vision for continued growth of the country.
The key question is whether positive sentiment is likely to continue, and there is nothing on the horizon that suggests it will be derailed, bar something external that happens globally.
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Supply
The following chart shows the planned private residential and EC units in the pipeline, which appear to be coming off their recent peak.
Whether it is the beginning of a down-cycle remains to be seen, but a low number here means that the number of units being launched for sale or will be completing in future is likely to be low, suggesting that prices of non-landed properties will be somewhat supported, at least until the pipeline / supply figures start rising again.
The second-order impact on supply is the sale of land by the government and en-bloc transactions.
Developers will be inclined to bid more aggressively for sites because of a dwindling land bank.
Expect to see stepped up activity by large developers such as CapitaLand, City Developments, Frasers Property and Guocoland and others when the government releases land for sale.
Given potential changes to the en-bloc market, expect developers also to be on a keen lookout for sites that could be purchased for redevelopment.
Unsold units
At the same time as there being high demand and low supply, the number of unsold private residential units is also at a low point.
This has happened because stronger demand than supply has reduced the number of unsold units.
This suggests that, at this point in time, buyers or investors looking to purchase a unit will not have much choice since there isn’t much product available in the market, resulting in more competition between buyers.
Vacancy
The interaction between strong recent demand and low supply (which both have resulted in a low number of unsold units and high competition between potential buyers) is resulting in vacancy rates of Singapore’s non-landed residential units reaching a cyclical low of 6.4% as of 3rd quarter 2025, as can be seen in the chart below.
The vacancy rate has never fallen below 5% since 1988.
This suggests that together with a low supply of units being completed, rents are likely to remain strong for the foreseeable future.
While rents are not the main topic of interest for us, healthy rents are likely to lead to positive knock-on effects on prices when investors see that the market is potentially healthy.
The chart below shows rents across the islandwide, in the OCR, RCR, and CCR.
Compared to non-landed private property prices, rents have somewhat flatlined post a surge during the COVID period of 2021 and 2022.
The most likely reason is that as private property rents increased, potential tenants shifted to renting HDBs.
At the same time, there was an increase in the HDB supply and acceleration of completions by the government to make up for the delays during COVID.
At the bottom line, however, the high rents for private properties have a positive knock-on effect on prices.
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Interest rates
Singapore’s compound SORA – 1 month has dropped from a high of approximately 3.5% in 2023 and 2024 to quite a low figure of just above 1% as of the time of this post being written.
The decrease in interest rates has likely helped to boost demand among buyers.
Looking forward, given that the interest rate easing cycle in the US and Europe has almost ended, future decreases in Singapore’s interest rates are likely to be very small.
At the same time, economic growth across the world is weak, and the US and Europe are likely to keep interest rates at their current levels for the next 1-2 years.
This would suggest that Singapore’s interest rates will remain at or around the current levels.
New condominium launches in 2026
Various brokerage firms and consultancies are predicting between 17 to 22 projects launching for sale in 2026, equating to about 1 to 2 every month.
The total number of units launched is likely to range between 8,000 to 10,000 units, or around 500 per development.
Most of the launches will be in the OCR, with about 4-5 new ECs launched in the year.
Large-scale plans by the government
Greater Southern Waterfront
In 2025, the Greater Southern Waterfront (GSW) is set to be Singapore’s most ambitious urban transformation, expanding six times the size of Marina Bay.
Spanning from Pasir Panjang to Marina East, this initiative integrates the city’s maritime heritage with sustainable living, featuring a continuous coastal promenade and nature corridors like the Southern Ridges.
The plan includes high-quality public housing at prime sites like Bukit Chermin and Keppel Club, promoting inclusivity and accessibility.
Covering about 2,000 hectares, the GSW aims to create a vibrant live-work-play environment as container port operations move to Tuas. The project envisions new homes, commercial districts, parks, and improved public transport.
With a focus on green infrastructure, the GSW promises to enhance recreation, biodiversity, and climate resilience, transforming southern Singapore into a sustainable waterfront city over the coming decades.
Paya Lebar airbase
The Paya Lebar Airbase (PLAB) redevelopment is a significant long-term urban transformation project in Singapore, set to begin relocating the airbase in the 2030s.
This will free up approximately 800 hectares of land for a new mixed-use town, accommodating around 150,000–160,000 new homes along with residential, commercial, and job nodes. The URA Draft Master Plan envisions this area as a next-generation neighborhood featuring integrated transport, green spaces, and community facilities, while preserving elements of the airbase’s heritage, such as the runway.
The initiative aims to meet housing demands and improve the quality of life by bringing employment closer to residential areas, enhancing connectivity, and allowing for taller developments in surrounding towns.
Spanning two to three decades, the project will also include new transport links and urban networks to improve connectivity in the east and northeast regions.
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