Singapore’s private residential property prices rose at their fastest pace in nearly two years in the third quarter of 2026, while rents recorded their strongest increase in more than three years, signalling continued pressure in the city-state’s housing market.

Final figures released by the Urban Redevelopment Authority (URA) on Friday, October 23, showed that the private residential property price index increased by 1.4 per cent in the three months to September 30, matching the preliminary estimate and accelerating from the 0.5 per cent growth recorded in the second quarter.

Private residential rents also climbed by 1.3 per cent quarter-on-quarter, marking their biggest increase in more than three years, according to figures reported by Bloomberg.

The latest data indicate that Singapore’s property market remains resilient despite a recent slowdown in sales, limited launches of new developments and concerns about rising interest rates and slower economic growth.

Landed Homes and Suburban Properties Drive Price Growth

Price increases across several segments of the private housing market contributed to the overall rise, with landed properties and homes in suburban areas recording notable gains.

Preliminary figures published by the URA on October 1 showed that landed property prices increased by 2.8 per cent in the third quarter, compared with 2.5 per cent in the preceding quarter.

Prices of non-landed private residential properties rose by 0.9 per cent, reversing the 0.1 per cent decline recorded in the second quarter.

Among non-landed properties, prices in the Outside Central Region, which largely covers suburban areas, rose by 2.2 per cent. The Rest of Central Region recorded a 0.2 per cent increase, while prices in the Core Central Region declined by 0.1 per cent.

The figures suggest that growth was uneven across Singapore’s housing market, with suburban and landed properties outperforming some homes in the central region.

Property Sales Slow Despite Rising Prices

The increase in property values came amid weaker transaction activity during the quarter.

According to Bloomberg, approximately 5,146 private residential units were transacted in the third quarter, representing a decline of about 16 per cent from the previous three months.

The slowdown was attributed largely to a shortage of new project launches, which has reduced the number of new homes available for sale.

Demand from local buyers and wealthy foreign residents has continued to support Singapore’s private property market, which is among the world’s most expensive.

However, analysts are monitoring whether the market can sustain its momentum amid higher borrowing costs and an uncertain economic outlook.

The URA has previously warned that the macroeconomic environment remains highly uncertain, including the outlook for global and domestic interest rates. The authority has also advised households to exercise caution when purchasing properties and taking out mortgage loans.

Analysts Expect Prices to Continue Rising Into 2027

Despite the slowdown in transactions, several analysts expect private residential property prices to continue increasing into 2027, although at a more moderate pace.

Bloomberg Intelligence forecasts that Singapore’s private home values could rise by about 1 per cent in 2027, citing factors including higher interest rates.

Prices are on course to increase by more than 3 per cent in 2026 if there is no major decline in the final quarter, according to the Bloomberg report. That would extend the market’s multiyear upward trend.

A clearer indication of demand is expected from new residential developments scheduled for launch, including a major project comprising 1,268 units that was expected to go on sale towards the end of October.

Recent launches of smaller boutique developments have recorded mixed results, with some selling only a fraction of their available units.

Public Housing Prices Show a Different Trend

While private residential prices and rents have risen, Singapore’s public housing resale market has followed a different trajectory.

Most residents in the city-state live in government-built Housing and Development Board (HDB) flats, which are offered at subsidised prices when newly purchased from the government.

Resale prices for these public housing units have declined slightly for three consecutive quarters following years of increases, according to the Bloomberg report.

The contrasting trends highlight the differences between Singapore’s private residential market and its public housing sector, where affordability remains a significant concern.

The government has continued efforts to maintain a steady supply of private housing to meet demand and support market stability. The URA announced plans for 9,320 private residential units under the confirmed Government Land Sales Programme for 2026, more than 50 per cent above the average annual supply over the preceding decade.

With prices and rents rising again, the coming months will provide further indications of whether Singapore’s housing market can maintain its momentum amid changing economic conditions and borrowing costs.

Source: Bloomberg; Singapore Urban Redevelopment Authority (URA).

Official data: URA’s private residential property market updates.