Singapore Home Prices to Climb 3-4% in 2026 on Lower Rates, Policy Shift

Moderate Growth Ahead

Singapore's residential property market is entering a phase of steady, demand-driven expansion. Private home prices are projected to increase between 3% and 4% through 2026, supported by declining mortgage costs and fresh policy adjustments that remove friction between the city-state's public and private housing sectors.

PropNex, one of Singapore's largest property agencies, released projections on August 13 showing developers are expected to sell approximately 9,000 new private residential units this year, excluding executive condominiums. That figure trails the 10,815 units sold in 2025, reflecting a softer first half marked by fewer new launches. Private resale transactions are forecast to reach 14,000 to 15,000 units, roughly in line with the 14,622 units transacted last year.

The outlook reflects a market recalibrating after several years of rapid appreciation. Price growth is slowing but remains positive, underpinned by owner-occupier demand rather than speculative activity.

Financing Costs Ease

A key driver behind the stabilization is the sharp decline in mortgage rates from their 2023 peaks. Fixed two-year housing loan rates now range between 1.4% and 1.7% annually, according to PropNex. That reduction in borrowing costs is making homeownership more accessible for local buyers with genuine housing needs.

Singapore citizens and permanent residents accounted for 98.3% of new non-landed private home purchases in the first half of 2026. Sub-sale transactions, a common proxy for speculative behavior, remain low relative to historical norms. The data suggests the market is functioning primarily as a venue for upgraders and first-time buyers, not investors chasing short-term gains.

Kelvin Fong, chief executive of PropNex, noted that residential demand continues to center on well-located projects. Population growth and rising household wealth are additional tailwinds.

Policy Changes Unlock Movement

Regulatory adjustments announced in July are expected to improve liquidity between Singapore's dual housing markets. The government abolished the 15-month wait-out period for private property owners purchasing non-subsidized HDB resale flats without an HDB loan, effective July 28. The cooling measure, introduced in 2022, had restricted movement for homeowners looking to downsize or adjust their living arrangements.

The removal is likely to benefit older homeowners, empty nesters, and families whose needs have evolved. PropNex expects the change to release more private resale inventory while boosting demand for larger HDB units, including five-room and executive flats.

Separately, the government extended timelines for additional buyer's stamp duty remission on large collective-sale sites. Developments yielding at least 700 but fewer than 1,400 residential units upon redevelopment now have six years to complete and sell units before the 35% ABSD remission is clawed back, up from 5.5 years. Mega sites producing at least 1,400 units have been granted seven years, up from the same 5.5-year baseline.

Developers pay 40% ABSD upfront on such acquisitions. The extended timelines are designed to revive interest in large en bloc opportunities, which had become less attractive under tighter completion schedules.

Public Housing Holds Steady

In the HDB resale market, PropNex forecasts 26,000 to 27,000 transactions in 2026, with prices rising by up to 1%. That compares with 26,169 units transacted in 2025. Resale activity in the first half of 2026 fell 7.4% year-on-year to 12,681 units, while prices dipped 0.4%.

Demand for premium HDB flats remains resilient. A total of 491 flats sold for at least S$1 million in the second quarter, up from 411 in the first quarter. The million-dollar HDB segment continues to attract upgraders and families prioritizing location and size.

PropNex Gains Market Share

Against this backdrop, PropNex reported revenue of S$603 million for the first half of 2026, up 0.7% from the prior-year period. The increase was driven by stronger agency commissions from HDB resale, landed homes, and leasing. Net profit declined 3.1% to S$40.9 million, down from S$42.3 million a year earlier.

The agency increased its market share to 64.3% in the first half, up from 60.6% for the full year 2025. Gains were recorded across new launches, private and landed resale, HDB resale flats, and private leasing. PropNex's agent count stood at 14,574 as of August 3, up from 13,945 at the start of the year.

The company declared an interim dividend of five cents per share, representing 90.4% of first-half net profit.

The combination of lower financing costs, regulatory fine-tuning, and sustained local demand positions Singapore's property market for measured growth through the remainder of 2026. The shift toward owner-occupier activity and away from speculation suggests a more stable foundation than in previous cycles.