Why Singapore’s housing demand fundamentals remain strong despite February dip

Activity is expected to rebound as fresh supply returns to the market.

Singapore’s new private home sales slowed sharply in February due largely to the absence of major project launches, which constrained the number of units available for purchase, according to analysis by PropNex.

Developers’ sales typically move in tandem with launch activity, said PropNex Head of Research and Content Wong Siew Ying, noting that the lack of new project introductions during the month led to lower transaction volumes.

“New private home sales in February fell substantially from the previous month, largely due to a lack of major project launches, which limited the supply of new units available for purchase,” said Wong. “Developers’ sales tend to move in tandem with launch activity, and with no new projects introduced during the month, the transactions were correspondingly lower.”

However, she said activity is expected to rebound as fresh supply returns to the market. Following strong demand at River Modern, PropNex anticipates healthy buying interest in upcoming launches including Rivelle Tampines EC and Pinery Residences.

Pricing trends also shifted during the month. About 42% of non-landed new private homes sold in February were priced below $2.5 million, down from 66% in January, according to PropNex. Wong noted that in months without new launches, the remaining inventory in existing projects typically consists of larger or premium units that carry higher overall price tags.

Despite this, demand for relatively affordable homes in prime areas remained evident. Around 62% of units sold in the Core Central Region were priced below $2.5 million, suggesting continued buyer interest in competitively priced homes in prime locations.

Buyer profiles remained largely domestic. Foreign buyers accounted for 3.3% of non-landed private new home sales in February, purchasing eight units across projects such as Newport Residences, Orchard Sophia, 8@BT, Elta, Promenade Peak and River Green. Singapore permanent residents accounted for 10.2% of purchases, while Singaporean buyers made up 86.5% of transactions.

Overall, developers sold 712 new private homes in the first two months of 2026, well below the 2,680 units transacted during the same period in 2025, reflecting tighter launch supply this year. PropNex noted that only 801 units were launched in the first two months of 2026, compared with 2,590 units in the corresponding period last year.

Looking ahead, Wong said the first quarter is likely to underperform both quarter-on-quarter and year-on-year, even if transactions rebound in March. Developers sold 3,375 units in Q1 2025 and 2,940 units in Q4 2025.

Still, PropNex remains cautiously optimistic about Singapore’s housing outlook.

“Although the unfolding conflict in the Middle East has introduced much uncertainty into the global economy, we are cautiously optimistic about home sales in Singapore,” Wong said. “Demand is mostly underpinned by owner-occupiers whose purchasing decisions are driven by genuine housing needs, and they tend to take a longer-term view of their property purchases.”