Singapore private home prices likely to rise about 3% in 2026

The strong link between launches and sales is expected to continue through 2027.

Singapore’s private residential property market is expected to see moderate price growth in 2026, supported by strong demand for new launches and rising land costs, according to a report by property consultancy Savills.

Savills said 11,482 new private residential units (excluding executive condominiums) were launched in 2025, representing a 72.7% increase from the previous year. Over the same period, 10,815 new units were sold, up 67.2% year-on-year, highlighting the strong relationship between supply and demand in the market.

According to Savills, this long-standing pattern — where sales closely track new launches — has historically helped cushion price declines during weaker market periods while amplifying price increases during recoveries.

Savills noted that the close alignment between launches and sales suggests that housing supply has generally been well calibrated to demand, although the absence of a clear cyclical downturn in prices could also imply a slight structural undersupply in the market.

Rising land costs and developer strategies

Savills highlighted that land prices have been trending higher over time, reflecting sustained competition among developers.

The consultancy said the average price for residential sites awarded under the Government Land Sales (GLS) programme’s Confirmed List rose from about S$1,060 per sq ft per plot ratio (psf ppr) in 2019 to around S$1,463 psf ppr for sites awarded as at February 2026, excluding mixed-use developments.

This translates to an average annual increase of roughly 5.5%, broadly in line with the average 5.7% annual growth in the Urban Redevelopment Authority’s price index for non-landed homes over the same period, Savills said.

As a result, developers without substantial freehold or long-tenure landbanks may need to continually replenish sites at progressively higher prices, guided by benchmarks set by recent new launches and competitive positioning.

Savills added that the healthy first-weekend take-up rates seen at recent launches suggest developers will likely continue restocking their landbanks to meet demand.

Demand drivers and risks

At the same time, Savills noted that household income growth has lagged behind property price growth in recent years. From 2019 to 2025, median household incomes for upper-income percentiles rose at around 3.0% to 4.5% annually, compared with about 5.5% annual growth in non-landed home prices.

According to Savills, the strong sales performance seen in the past two years may have been partly supported by parental financial assistance as well as wealth generated outside Singapore, such as gains from cryptocurrencies and overseas equity investments.

However, the firm cautioned that increased volatility in these markets could influence demand for upcoming launches.

Outlook for 2026

Looking ahead, Savills expects the tight relationship between launches and sales volumes to persist through 2026 and 2027 under normal market conditions.

However, the firm said that following the islandwide price reset that began around mid-2022, triggered by projects such as Piccadilly Grand and Lentor Modern, it may take one to two more years before another broad market repricing occurs.

Savills added that some repricing could emerge within the city-fringe and prime segments in 2026, particularly as new launches in the Rest of Central Region (RCR) may begin to overlap with prices typically seen in the Core Central Region (CCR).

Overall, Savills projects that Singapore’s private residential property prices will increase by around 3% in 2026, reflecting steady demand and continued supply discipline in the market.