Singapore Property Price Trends 2026: Will Prices Rise or Fall?
The Singapore property market stands at a critical juncture as we approach 2026. After three consecutive years of slowing growth from 2022 to 2024, followed by a modest 2.7% rise in private home prices during the first nine months of 2025, investors and homebuyers are asking one fundamental question: will Singapore property prices continue their upward trajectory in 2026, or will we see a correction?[4] At Homejourney, we believe in providing you with verified, transparent market analysis to help you make confident property decisions. This comprehensive guide examines the latest data, expert forecasts, and market dynamics to give you a definitive answer grounded in rigorous analysis.
The short answer is nuanced: Singapore property prices are projected to rise moderately in 2026, but the trajectory varies significantly by property type, location, and buyer profile. The Residential Property Price Index is forecasted to reach 231.00 points in 2026, up from 210.70 points in Q1 2025, representing a meaningful but measured appreciation.[1] However, this growth will be tempered by new supply, economic headwinds, and shifts in buyer demographics.
Table of Contents
- Executive Summary: The 2026 Property Market Outlook
- Market Fundamentals: Understanding Current Conditions
- Price Forecasts by Property Type
- Supply and Demand Dynamics
- Economic Factors Influencing 2026 Prices
- Regional Analysis: Where Will Prices Rise Most?
- Investment Strategies for 2026
- Foreign Buyer Considerations and ABSD Impact
- Frequently Asked Questions
- Next Steps: How Homejourney Supports Your Property Journey
Executive Summary: The 2026 Property Market Outlook
Singapore's property market in 2026 will be characterized by moderate price appreciation, limited new supply, and a flight-to-quality trend.[2] This creates a nuanced investment landscape where strategic positioning matters more than ever. The government's commitment to releasing more than 25,000 new private homes through the Government Land Sales (GLS) programme from 2025 to 2027 will help stabilize prices while still allowing for appreciation in premium segments.[4]
Key market drivers for 2026 include stable economic growth (projected at 2.2% GDP growth), lower borrowing costs supporting market expansion, continued capital inflows from global investors seeking safe-haven assets, and the ongoing wealth effect from baby boomer demographics.[2][5] However, headwinds include heightened economic uncertainty, pullback in foreign demand, and moderation in sales momentum as developers shift focus to higher-priced Central Region (CR) and Rest of Central Region (RCR) projects.
For Homejourney users, this means 2026 presents selective opportunities rather than broad-based gains. Properties in prime locations, newly launched developments, and landed homes positioned to benefit from limited supply will likely outperform. Conversely, older non-landed properties in fringe areas may see muted appreciation or potential stagnation.
Market Fundamentals: Understanding Current Conditions
Recent Price Performance and Market Stabilization
The Singapore private residential market has entered a stabilization phase after years of volatility. In Q1 2025, the Property Price Index for all private residential properties rose 0.81% quarter-on-quarter and 3.33% year-on-year, marking a significant slowdown from the double-digit growth rates seen in 2021-2022.[5] This moderation reflects the market's adjustment to higher interest rates, stricter financing conditions, and the government's cooling measures implemented since 2022.
Non-landed properties (condominiums and apartments) led growth with a 4.74% year-on-year increase, while landed properties showed more modest gains of 0.38% quarter-on-quarter.[5] This divergence is crucial for understanding 2026 dynamics: the condo market is responding to new launches and urban demand, while the landed market is constrained by supply scarcity.
Inventory Levels and Market Balance
One of the most supportive factors for 2026 prices is the low level of unsold inventory. Approximately 55,600 units, including executive condominiums, are in the approved or pending development pipeline.[5] This represents a healthy but not excessive supply level, providing enough new stock to meet demand without flooding the market. For context, this translates to roughly 8,000-9,000 units per year over the next 6-7 years, which aligns with historical absorption rates.
The tight inventory situation is particularly pronounced in the landed property segment. With only 73,000 landed properties projected to exist in Singapore over the next 15 years (compared to 500,000 condominiums), the limited supply of landed homes creates an inelastic supply-demand relationship that will support price appreciation.[3] This is a critical insight for investors: landed properties will continue to be the "cream of the crop" due to fundamental supply constraints.
Price Forecasts by Property Type
Overall Market Projection
Trading Economics' econometric models project the Singapore Residential Property Price Index to reach 231.00 points in 2026, representing a 9.6% increase from Q1 2025 levels of 210.70 points.[1] This translates to approximately 3-4% annual appreciation, which is consistent with expert forecasts from CBRE and PropNex. By 2027, the index is projected to reach 241.00 points, suggesting sustained but gradually moderating growth.[1]
Segment-Specific Forecasts
| Property Type | 2026 Forecast | Key Drivers | Risk Factors |
|---|---|---|---|
| Landed Properties | 4-6% appreciation | Inelastic supply, wealth effect, limited new launches | Economic slowdown, foreign buyer pullback |
| Condominiums (Non-Landed) | 3-4% appreciation | New launches, urban demand, lower interest rates | Increased supply, rental market softness |
| Executive Condominiums (ECs) | 2-3% appreciation | HDB upgraders, affordability, new launches | HDB resale price moderation, policy changes |
| Fringe/Suburban Areas | 1-2% appreciation | New launches, accessibility improvements | Migration to prime areas, increased supply |
The most important takeaway from this segmentation is that price appreciation in 2026 will be highly differentiated. Landed properties and premium condominiums in prime locations will significantly outperform fringe and older properties. This flight-to-quality trend reflects both investor sophistication and the wealth effect from Singapore's aging population.
Supply and Demand Dynamics
Government Land Sales Programme: The Supply Anchor
The Singapore government's commitment to releasing more than 25,000 new private homes through the GLS programme from 2025 to 2027 is a critical stabilizing factor for 2026 prices.[4] This translates to approximately 15,245 private new homes expected in 2026 and 2027, following the 9,755 units supplied in 2025 through the Confirmed List. More than 9,000 new private homes could be built on land offered for sale in the first half of 2026 alone, with several key locations that could shape future price trends.[6]
This measured supply release is deliberately calibrated to meet housing demand while preventing sharp price spikes. By releasing land in a controlled manner, the government ensures that prices remain affordable while still allowing appreciation for existing property owners. For Homejourney users, this means the market will remain relatively stable without dramatic price shocks in either direction.
Demand Factors: Who Is Buying in 2026?
Demand in 2026 will be driven by several key segments:
HDB Upgraders: Rising HDB resale prices have closed the price gap for upgraders, making the transition to private property more accessible. This cohort represents a stable, long-term buyer base with strong household balance sheets.[5]
Baby Boomer Wealth Effect: Singapore's aging population is experiencing significant wealth accumulation, driving investment property purchases and primary residence upgrades. This demographic trend will support demand across premium segments throughout 2026 and beyond.
Global Safe-Haven Investors: Despite pullback in foreign demand, Singapore continues to attract capital from international investors seeking stable, liquid real estate markets. However, the Additional Buyer's Stamp Duty (ABSD) remains a significant deterrent for foreign buyers, particularly at the current 60% rate for non-citizen, non-permanent resident purchases.[3]
Owner-Occupiers: Lower interest rates and competitively priced new developments have uplifted buyer sentiment in the private market, attracting owner-occupiers seeking better living spaces.[5]
Economic Factors Influencing 2026 Prices
GDP Growth and Economic Stability
Singapore's projected GDP growth of 2.2% in 2026 provides a stable economic foundation for property market appreciation.[2] This growth rate, while modest compared to pre-pandemic levels, is sufficient to support employment, income growth, and household balance sheet strength—all critical factors for real estate demand.
However, this forecast carries significant uncertainty. Trade policy actions, geopolitical tensions, and global economic volatility could impact Singapore's growth trajectory. The International Monetary Fund (IMF) currently projects 1.9% growth for 2026, slightly below Singapore's official forecast, reflecting these uncertainties.[5] For property investors, this means 2026 will be a year of resilience rather than explosive growth.
Interest Rates and Borrowing Costs
Lower borrowing costs are explicitly cited as a factor supporting market expansion in 2026.[2] As central banks gradually normalize monetary policy following the aggressive rate hikes of 2022-2023, mortgage rates have stabilized at more attractive levels. This environment supports both owner-occupier purchases and investor activity.
For buyers planning to purchase in 2026, current interest rate levels are historically favorable. Homejourney recommends reviewing Bank Rates to compare current mortgage offerings and lock in competitive rates early in the year.
Inflation and Cost Pressures
Consumer price index (CPI) inflation in Singapore has continued to ease, dropping from elevated levels in 2022-2023.[5] This moderation in inflation supports real estate valuations by reducing the discount rate applied to future property cash flows. Construction cost inflation, while still present, has also moderated, making new project launches more feasible at current price points.
Regional Analysis: Where Will Prices Rise Most?
Central Region (CR): Premium Segment Leadership
The Central Region, encompassing prime districts like Orchard, Marina Bay, and Sentosa, will continue to lead price appreciation in 2026. These areas benefit from:
- Limited new supply due to scarcity of available land
- Strong international investor demand despite ABSD constraints
- Premium positioning and lifestyle amenities
- Flight-to-quality trend favoring established prime locations
References
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Disclaimer
The information provided in this article is for general reference only. For accurate and official information, please visit HDB's official website or consult professional advice from lawyers, real estate agents, bankers, and other relevant professional consultants.
Homejourney is not liable for any damages, losses, or consequences that may result from the use of this information. We are simply sharing information to the best of our knowledge, but we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information contained herein.