Overview
Private home prices in Q3 2026 recorded the eighth consecutive quarter of gains. According to flash estimates released by the Urban Redevelopment Authority (URA), the overall price index for private residential properties climbed at a faster pace of 1.4 per cent in Q3 2026, after posting a 0.5 per cent increase in the preceding quarter.
Q3 2026 quarterly growth is the fastest in almost two years, with the previous high at 2.3 per cent growth in Q4 2024. Year-to-date, prices increased by 2.8 per cent in the first three quarters of this year.
By Market Segment
The price growth was driven by the landed segment, growing by 2.8 per cent in the third quarter of this year, following the 2.5 per cent rise in the second quarter. Prices of non-landed home similarly increased by 0.9 per cent, reversing the 0.1 per cent dip in the preceding quarter.
Among the sub-markets, non-landed properties in the suburbs or Outside of Central Region (OCR) rose 2.2 per cent in Q3 2026, while prices in the city fringe or Rest of Central Region (RCR) increased marginally by 0.2 per cent. The Core Central Region (CCR) recorded a marginal drop of 0.1 per cent.
Reasons behind the faster price growth
Overall, prices grew faster due to a bigger proportion of private homes sold at a higher price. For instance, the share of private homes (excluding ECs) sold for at least S$2 million, rose from 49.2 per cent in Q2 2026 to 53.6 per cent in Q3 2026. This is especially so for new sales (excluding ECs), which saw the proportion of new home transactions sold for at least S$2 million surging from 52.3 per cent to 71.7 per cent over the same period.
Market Outlook
The final quarter of 2026 will likely see a noticeable surge in transactions due to the highly anticipated line-up of a few blockbuster launches. This includes Lucerne Grand, Thomson Reserve and The Serra. These three projects will introduce about 2,000 new private residential homes collectively.
As the 1,268-unit mega development at Thomson Reserve is located in the RCR and with prices projected to surpass S$2,600 psf, the massive volume and premium city-fringe pricing from this project alone may uplift the overall private property price index in Q4 2026.
Nevertheless, some buyers may exercise caution as interest rates could continue to rise in the months ahead. In September 2026, the Federal Reserve raised its interest rates for the first time since July 2023, signalling that further tightening may be on the cards should inflation stay elevated with increased global import tariffs, as well as energy shock stemming from the geopolitical war in the Middle East and intense capital spending on AI technologies.