Private home prices rose at a slower pace in the first quarter of 2026, the third  consecutive slowdown. Sales activity similarly softened, with transactions dipping year-on-year.

According to flash estimates released by the Urban Redevelopment Authority (URA), the overall price index for private residential properties rose marginally by 0.3 per cent in the first quarter of 2026, following three consecutive quarters of slower growth – from 1 per cent in Q2 2025 to 0.9 per cent in Q3 and 0.6 per cent in Q4.

The price decline was led by landed properties, which saw prices dip by 1.8 per cent in Q1 2026, following a 3.4 per cent price growth in Q4 2025. Non-landed properties saw prices rebound by 1 per cent in Q1 2026.

Among the sub-markets, non-landed properties in the Core Central Region (CCR) registered the weakest performance, with prices rising by a marginal 0.4 per cent in Q1. This was followed by the city fringe or Rest of Central Region (RCR) at 0.9 per cent and suburbs or Outside of Central Region (OCR), where prices increased the most by 1.3 per cent.

The price falls were likely attributed to weaker transaction volumes across these segments. According to data from URA Realis, the number of landed and non-landed home sales (excluding ECs) in RCR fell the sharpest by 55 per cent, from 2,606 units in Q4 2025 to 1,174 units in Q1 2026. This was followed by OCR, where the number of transactions slid by 29.7 per cent, while transactions in CCR dipped by 17.9 per cent q-o-q in Q1 2026.

Sales momentum was also affected by the Chinese New Year festivities in February, which typically result in slower market activities.

While the simultaneous decrease in sales transactions and slower price growth reflect a broader slowdown in the housing market, driven by an escalation of macroeconomic uncertainties and cautious sentiment among buyers and investors, certain market segments are still performing well. These include new homes in attractive locations, ECs and suburban homes with more accessible price points, as well as luxury homes. 

For instance, Rivelle@Tampines and Pinery Residences each sold more than 90 per cent of the entire project within the first weekend.

Meanwhile, luxury home sales (landed and non-landed properties of at least S$5 million) in CCR held relatively steady at 179 transactions last quarter, exceeding the past three-year quarterly (Q1 2023 to Q4 2025) average of 138 units. 67 private homes were similarly sold at this price tag in RCR last quarter, above the past three-year quarterly average of 61 units.

These trends indicate that a growing number of buyers are acquiring premium properties here, viewing them as secure assets in the face of the ongoing macroeconomic uncertainties. It also reinforces Singapore’s reputation as a safe haven for wealth preservation during turbulent times.  

The property market has not experienced the full impact of the ongoing Middle East conflicts. Although tensions have heightened geopolitical risks, the scale of impact will be contingent on how the situation unfolds. If the conflict escalates or prolongs, the increased volatility, coupled with higher oil prices and construction costs, could drive up business costs. Inflationary pressures may persist and elevate interest rates, which would have an adverse impact on borrowing costs and home-buying sentiment.

Currently, we are maintaining our overall price projection for 2026 private residential prices to grow by 2.5 to 4.5 per cent, with 23,500 to 25,500 transactions expected for the whole year.