PHOTO: LIANHE ZAOBAO FILE
SINGAPORE – The outlook for the private residential property market remains optimistic in 2026. Prices are poised to stabilise, and total sales volume may exceed the past 10-year average.
Mortgage rates are expected to stay low, thereby boosting affordability and attracting more buyers to the market. Historical data shows that the property market tends to be more active when interest rates fall.
Barring unexpected economic shocks or a sudden financial crisis, Singapore’s economy will likely remain positive, buoyed by a strong third-quarter gross domestic product performance, which has led to an upgraded full-year growth projection of about 4 per cent for 2025.
However, an uneven labour market outlook may pose challenges. While several sectors – such as healthcare, biomedical, fintech and digital technologies – are expected to expand, trade-reliant industries, smaller retailers and administration jobs could face downsizing risks or even replacement by artificial intelligence. Job uncertainties may cause some prospective home buyers to be more prudent in their purchase decisions.
Limited new home supply
In the housing market, the number of new project launches slated for 2026 is expected to be lower than in previous years. Seventeen projects, excluding executive condominiums (ECs), could be launched in 2026, down from 26 in 2025, 22 in 2024 and 21 in 2023. Including ECs, there will be 21 potential project launches in 2026.
As a result, the number of newly launched units, excluding ECs, will decline by about 29 per cent, from around 11,430 to 8,113. New sales volume is projected to drop in tandem from an estimated 10,800 to 11,200 units in 2025 to between 8,500 and 9,500 units in 2026.
Some upcoming project launches could grab headlines. In the prime location, or core central region, units in the freehold mixed-use development Newport Residences (formerly Fuji Xerox Towers) are elevated above 20 floors, which will offer impressive panoramic views of the city skyline.
The upcoming project in Holland Link, built by Sim Lian Group, will be the first of eight residential land parcels to be launched in the new Holland Plain precinct under the Urban Redevelopment Authority’s (URA) masterplan.
With prime land becoming more scarce and this new precinct envisioned as a low-density neighbourhood featuring ample green spaces and a car-lite environment, new properties developed here are likely to attract keen interest from luxury home buyers, positioning this area as one of the most anticipated future prime residential zones in the upcoming years.
Other luxury home launches to watch include River Modern, which is directly connected to Great World MRT Station and Great World shopping mall via an underground walkway, the Government Land Sales (GLS) site in Dunearn Road, and One Leonie Residences. In the city fringe area, or rest of central region (RCR), the high-profile Thomson View Condo will be redeveloped and may likely be launched for sale.
Other RCR projects include the GLS sites in Dorset Road and Media Circle (Parcel A), as well as the last Keppel Bay plot.
Suburban market back in the spotlight
The suburban area, or outside of central region (OCR), will be back in focus with the most project launches in 2026. Around 4,635 units (excluding ECs) will be released for sale in 2026, the highest in six years. Including ECs, more than 6,600 units will be made available. This means that home buyers, especially HDB upgraders, will have more affordable private home options in 2026 than in previous years.
Eight condominiums will be introduced across the island, including the GLS site in Tengah Garden Avenue (the first condo to be built in the Tengah estate). Others include Narra Residences in Dairy Farm Walk; and the GLS sites in Tampines Street 94, Bayshore Road, Lakeside Drive, Chuan Grove and Lentor Gardens.
Four EC projects will be ready for sale. Among them, the EC in Tampines Street 95 is notable, as ECs in Tampines are highly popular. Furthermore, this project is within walking distance of an MRT station along the Downtown Line and close to many reputable schools.
Increased completions will spur resale transactions
More homes will be completed in 2026. The number of private home completions or residences obtaining their Temporary Occupation Permit (TOP) is projected to rise from 5,249 units in 2025 to 7,006 units in 2026, according to URA’s third-quarter 2025 real estate statistics.
The increased housing inventory will help balance the upcoming shortfall in new project launches. As the supply-demand balance improves, price growth in the housing market will likely be moderated.
Among the regions, the city fringe RCR will have the highest number of completed homes in 2026, at around 3,977 units. Key completions include Canninghill Piers, Tembusu Grand, Pinetree Hill, Blossoms By The Park, Bartley Vue and Terra Hill.
The suburban OCR will have the fewest project completions in 2026, with around 2,420 units. The limited number of resale completions will balance the expected surge in new home launches in OCR, thus preventing an oversupply of homes in the region.
In view of the increased project completions, resale volume is expected to remain robust at 14,000 to 15,000 units, with a modest resale price growth of 2 per cent to 4 per cent in 2026.
Rents to hold steady
For the private rental market, landlords will likely face stiffer competition for tenants due to the increased private home completions. Moreover, some tenants may shift to the public housing market as the number of resale flats eligible for rental is poised to grow.
Some tenants, especially young single expats, may move from leasing small private apartments to well-located new HDB flats, given the cost savings and convenience.
Nevertheless, the number of non-residents or foreigners in Singapore has been steadily increasing.
According to the Singapore Department of Statistics, non-resident numbers rose from 1.768 million in 2023 to 1.856 million in 2024 and further to 1.907 million as at September 2025. Permanent resident numbers held relatively steady at 543,832 in 2025. As the general population continues to grow, there will be continual demand for rental housing.
The net effect may keep rental price growth steady at 2 per cent to 3 per cent, with approximately 82,000 to 87,000 new leases expected in 2026. However, these projections are lower than the past 10-year averages of 5.5 per cent and 88,440 units.
Overall market projections
The private residential market will be fuelled by domestic demand, easing mortgage rates and a stable economy. We expect more flats to fetch high prices, enabling more upgraders to afford a new private home. Moreover, the rising number of wealthy singles and local investors will boost demand for under-valued resale homes and small new homes.
As the majority of 2026’s launches will be in more affordable suburban areas and there will be a bigger supply of resale completions, the risk of steep price surges is low.
If there are no significant policy shifts, unexpected crises, or new cooling measures, private home prices for the overall market are projected to rise by 2.5 per cent to 4.5 per cent in 2026. This is on a par with the estimated 3.5 per cent to 4.5 per cent growth for 2025 and the 3.9 per cent in 2024. Approximately 23,500 to 25,500 private homes (excluding ECs) may be sold in 2026.
“Source:[4 private home market trends to watch in 2026] © Singapore Press Holdings Limited. Permission required for reproduction”
