Private home prices grew at a slower pace in the second quarter of 2026, although this is the seventh consecutive quarter of growth.

According to flash estimates released by the Urban Redevelopment Authority (URA), the overall price index for private residential properties climbed marginally by 0.5 per cent in the second quarter of 2026, following six quarters of continuous growth.

For the first half of this year, prices rose marginally by 1.4 per cent, which is the smallest half-year growth since 2020. The pace of bi-annual price growth has steadily moderated since 1H 2022 (4.2 per cent), 1H 2023 (3.1 per cent), 1H 2024 (2.3 per cent) and 1H2025 (1.8 per cent), indicating that the market is stabilising, with prices rising but at a more sustainable pace. 

By Market Segment
Prices of landed properties rose by 2.6 per cent in the second quarter of 2026, reversing from the 0.4 per cent price dip in the preceding quarter.  Prices of non-landed homes decreased by 0.1 per cent, reversing from 1.3 per cent increase in the previous quarter.

Among the sub-markets, non-landed properties in the Core Central Region (CCR) registered the strongest performance, with prices growing by 2 per cent in Q2, up from a marginal 0.6 per cent growth in Q1. City fringe or Rest of Central Region (RCR) posted a drop of 1.4 per cent in Q2 after rising 0.8 per cent in Q1. Suburbs or Outside of Central Region (OCR) registered a marginal price decrease of 0.2 per cent in Q2, after rising 2.2 per cent in Q1.

The overall price index may have been weighed down by a higher proportion of transactions involving lower-priced homes in the suburbs. For instance, a majority or 58.9 per cent of total sales (non-landed and landed excluding ECs) in Q2 2026 were in the suburban OCR, up from 50.2 per cent in Q1 2026 and 38.6 per cent in Q4 2025, according to URA caveat data (up to 23 June 2026). Conversely, the proportion of transactions in CCR, which are often higher priced, dipped to 12.3 per cent, from 24.2 per cent and 21.9 per cent over the same periods. In Q2 2026, 28.7 per cent of total sales were in the RCR.  

The slower price growth may also be attributed to a number of new projects being launched in the suburbs, where prices tend to be lower than projects in the city fringe and prime areas. They include Tengah Garden Residences and Vela Bay.

As more suburban units were transacted in Q2, the number of new private homes (excluding ECs) transacted below S$2 million rose sharply from 631 units in Q1 2026 to 1,016 units in Q2 2026, which may have dragged down the overall price index in Q2.

On a per-square-foot basis, the number of new homes (excluding ECs) sold below S$2,000 psf climbed from 24 units in Q1 to 144 units in Q2.

 

Although the Middle East tensions are less intense, the global economy is grappling with other challenges, such as structural unemployment driven by AI advancements and tech automation and sticky inflation that is forcing central banks to keep interest rates elevated for longer periods.

Higher mortgage rates with a dimmer hiring outlook may cause some prospective homebuyers to exercise greater caution when making big-ticket purchases. This may impact housing demand and slow the pace of price growth.

High-value tech sectors related to AI, software engineering and semiconductor manufacturing are expected to expand and serve as vital counterbalance to the prevailing macroeconomic challenges. Expats and highly skilled local professionals working in these sectors will likely be well-paid, which may prop up demand for private homes.

In view of the countervailing factors, we expect overall prices to grow modestly by 2.5 to 3.5 per cent this year.