Private home prices in Q2 2026 recorded the seventh consecutive quarter of growth, albeit at a slower pace. According to the Urban Redevelopment Authority (URA), the overall price index for private residential properties climbed marginally by 0.5 per cent in Q2 2026, slightly slower than the 0.9 per cent growth observed in the preceding quarter.

Prices increased by 1.4 per cent in the first half of 2026, representing the weakest half-year growth since 2020. The pace of bi-annual price growth has steadily moderated since 1H 2022 (4.2 per cent), indicating that the market is stabilising, with prices rising but at a more sustainable pace.

Private home sales increased in Q2 2026.  According to URA Q2 2026 real estate statistics, total sales (excluding EC) rose by 13.6 per cent from 5,413 units in Q1 2026 to 6,148 units in Q2 2026.

The higher sales volume was led by the increase in resale transactions (excluding EC), which rose by 18.2 per cent from 3,225 units in Q1 2026 to 3,813 units in Q2 2026. Likewise, new sales picked up last quarter, increasing by 6.4 per cent from 2,013 units in Q1 2026 to 2,141 units in Q2 2026.

Rental prices rose modestly in Q2 2026. According to the Urban Redevelopment Authority (URA) rental index, private rents climbed marginally by 0.7 per cent last quarter, a pace slightly faster than the 0.3 per cent growth registered in the preceding quarter. Despite the price increase, overall occupancy rates remained healthy at 93.6 per cent in Q2 2026.

Landlords may face stiff competition for tenants in the upcoming months as more flats obtain their five-year minimum occupation period (MOP) and could be listed for rental. Some of these newly MOP could be well located or possess desirable attributes.

Based on anecdotal observations, expatriate professionals have been adjusting their housing arrangements, following job changes or corporate restructuring in recent months, especially those working in sectors affected by automation and AI. Demand may soften in the second half of this year if the macroeconomic outlook worsens.

The overall private rental price index is expected to hold steady at 2 to 3 per cent for the whole of 2026, while 82,000 to 87,000 homes could be leased.

With rising mortgage rates and a dimmer hiring outlook, prospective homebuyers may exercise greater caution with big-ticket purchases, which may impact housing demand and slow price growth.

Meanwhile, high-value tech sectors related to AI, software engineering, and semiconductor manufacturing are expected to expand, which may help support employment and income growth by creating new jobs in the economy. This could offset the impact of prevailing macroeconomic challenges and the labour market slowdown, and support housing demand.

In view of the countervailing factors, we expect overall prices to grow modestly by 2.5 to 3.5 per cent this year. Around 22,500 to 25,000 private homes (excluding EC) may be transacted this year, lower than in 2025 but higher than in 2022 to 2024.