Singapore housing market poised for continued stability in 2026

Developers’ sales are projected to range between 8,000 and 9,000 units this year.

Singapore’s private housing market is expected to remain stable and resilient in 2026, supported by moderating price growth, healthy sales momentum and lower interest rates, according to Kelvin Fong, Chief Executive Officer of PropNex Realty.

Reviewing market conditions in 2025, Fong said the year had been “a relatively good place for the market”, with prices rising at a slower pace despite stronger private home sales, while rentals recovered modestly amid healthy leasing demand.

“Taken together, these indicators suggest that the market could be in a ‘Goldilocks’ phase — not too cold, nor too hot, but balanced and just right,” Fong said. “That the robust sales in 2025 did not lead to rapid price spikes also reflects developers’ discipline in pricing units, and their focus on driving healthy take-up rates at launch with well-calibrated prices in a highly value-conscious market.”

Lower interest rates underpin confidence

Looking ahead, Fong said the stability and sales momentum seen last year could spill over into 2026, helped by a more favourable interest rate environment. He noted that as at 23 January 2026, the three-month compounded Singapore Overnight Rate Average (SORA) stood at around 1.14% per annum — its lowest level since July 2022.

“This is meaningful for homebuyers, as some two-year fixed-rate home loan packages are currently available at about 1.4% to 1.5% per annum, significantly lower than the more than 4% per annum rates seen at the end of 2022,” he said, adding that lower borrowing costs could help ease debt servicing burdens and improve affordability.

Low sub-sales point to healthier demand

Fong also highlighted that speculative activity remains subdued, with sub-sales forming a relatively small proportion of overall transactions. Sub-sales accounted for just 3.4% of total sales in Q4 2025 — among the lowest proportions in recent years.

For the full year, there were 1,055 sub-sales transactions, down from 1,428 in 2024 and 1,294 in 2023. “Falling sub-sales, which are commonly seen as a proxy for property speculation, suggest that buying activity is increasingly driven by owner-occupiers and longer-term investors,” Fong said. “This is positive for market stability.”

He added that fewer sub-sales could also indicate stronger financial holding power among buyers, or reduced financing stress following the decline in interest rates.

Tight unsold inventory supportive

Another factor likely to support the market in 2026 is the relatively low level of unsold housing stock, Fong said. Citing URA data, he noted that there were 14,859 unsold, uncompleted private homes (excluding executive condominiums) in the pipeline at the end of Q4 2025 — a 12.7% decline from the previous quarter and the lowest level in 15 quarters.

Based on the 10-year annual average developer sales of about 9,106 units between 2016 and 2025, Fong said the current unsold inventory could potentially be absorbed within around two years.

Launch pipeline and outlook

According to latest estimates from PropNex’s sales team as at 23 January, about 8,800 private homes (excluding ECs) from 23 projects, as well as five EC projects comprising around 2,300 units, could be launched in 2026. Coastal Cabana EC has already been launched, while Narra Residences and Newport Residences are expected to come to market later in January.

“With moderating price growth and lower interest rates, we believe there is a window of opportunity in 2026 for prospective buyers, including HDB upgraders, to enter the private housing market,” Fong said. He added that some HDB flat owners may consider selling their flats — as resale price growth flattens — to upgrade to private homes amid stabilising private residential prices.

For 2026, PropNex projects developers’ sales to range between 8,000 and 9,000 units (excluding ECs), likely towards the upper end of the forecast. Private resale transactions are expected to come in at around 14,000 to 15,000 units, while private home prices are projected to grow moderately by 3% to 4% for the year.