Window of opportunity opens for property buyers and investors in 2026

Pipeline of new BTO flats and private launches expected to moderate resale prices, while stabilising interest rates improve outlook for S-REIT investors.

By Khalil Adis

View of downtown Singapore. Photo: Courtesy of Alesia Kozik from Pexels.

If you are planning to buy a property in 2026, market conditions may be turning increasingly favourable, as resale HDB and private home price growth is expected to moderate amid a surge in upcoming housing supply.

The government has been ramping up the supply of Built-to-Order (BTO) flats and private homes since 2025 in a bid to ease housing pressures across both the public and private markets.

In the HDB segment, authorities announced plans to launch about 19,500 new BTO flats in 2025 alone.

Meanwhile, data from the Urban Redevelopment Authority (URA) shows that the expansion in private housing supply is expected to deliver around 57,000 private residential units over the next few years, including Executive Condominiums (ECs), largely stemming from recent Government Land Sales (GLS) programmes.

Taken together, the growing supply pipeline is expected to gradually shift bargaining power toward buyers.
​
Opportunities also abound for investors in  Singapore-listed real estate investment trusts (S-REITs), especially the office and retail sectors.

Flat buyers lured by new BTO launches

Artist’s impression of the first BTO project in Sembawang North launched in July 2025. Photo: HDB.

The HDB resale price index (RPI) for the fourth quarter of 2025 reached a record 203.6 points, remaining largely unchanged from 203.7 points in the previous quarter.

“While resale HDB prices grew by 2.9 per cent year-on-year in 2025, it was the slowest annual growth since 2019,” said Wong Xian Yang, head of research, Singapore & Southeast Asia, Cushman & Wakefield.

Property agents say the resale HDB market slowed considerably in 2025 compared with the previous year as buyer urgency eased.

“Previously, a single listing could attract up to ten buyers vying for a resale HDB flat, especially one sold without any extension. Usually they would be sold within a weekend. In the current market, you are lucky to get one or two viewers, and even then it may take time to sell the unit,” said Hakim Halim, associate group director at PropNex.

The slowdown could extend into 2026 as new supply enters the market.

Between 2025 and 2027, HDB plans to launch about 55,000 flats, up from its earlier commitment of 50,000 flats, to meet housing demand.

As more buyers divert their attention toward new BTO launches, resale price pressures are expected to ease further, reinforcing expectations of a more buyer-friendly market.

Million dollar HDB flats still active

HDB flats at Dawson Road. Photo: Khalil Adis Consultancy.

Despite signs of moderation, million-dollar resale HDB transactions remained notable in 2025.

According to data from HDB, a total of 1,510 such flats changed hands during the year, including 302 units in Toa Payoh alone.

Toa Payoh recorded the highest number of million-dollar four-room resale flats (195 units), followed by Queenstown (114 units) and Bukit Merah (110 units).

For five-room flats, Bukit Merah led with 106 transactions, followed by Toa Payoh (93 units) and Queenstown (53 units).

Serangoon recorded the most executive flats sold (44 units), followed by Bishan and Hougang (38 units each), Woodlands (29 units) and Pasir Ris (20 units).

Only two three-room million-dollar resale flats were sold island-wide, both in the Kallang/Whampoa area.

Three Multi-Generation resale flats were transacted, with one unit each in Bishan, Central and Tampines.

Softening private property market as buyers gravitate to new launches

Skye at Holland. Photo: Holly Development Pte Ltd.

The private residential resale market also showed signs of moderation in 2025 as buyers remained cautious.

URA data showed that the private property price index rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, compared with a 3 per cent increase in the previous quarter.

For the full year, prices rose 3.3 per cent, marking a slower pace of growth.

“Private residential prices rose 0.6 per cent quarter-on-quarter in the fourth quarter of 2025, or the fifth straight quarter of increase. Full year 2025 growth was 3.3 per cent year-on-year, moderating from 3.9 per cent year-on-year growth in 2024, or the lowest pace of annual increase since the pandemic year of 2020, suggesting overall buyers’ caution,” said Wong.

Sales volumes also declined.

“Overall private residential sales volume fell by 9.5 per cent quarter-on-quarter or 9.9 per cent year-on-year to 6,699 units in the fourth quarter of 2025. The decline in overall sales volume was driven by the new sales market, which fell by 10.6 per cent quarter-on-quarter to 2,940 units due to fewer new launches in the fourth quarter of 2025,” said Wong.

There were six new launches in the fourth quarter of 2025 (2,766 units), compared with nine launches (4,146 units) in the third quarter.

Resale transactions fell 9.1 per cent quarter-on-quarter to 3,529 units, while sub-sales declined 2.1 per cent to 230 units.

However, selected new launches continued to see strong take-up rates.

“The robust demand at new launches powered developers’ sales to an 11-month high in October,” said Kelvin Fong, CEO of PropNex.

Projects such as Skye at Holland, Penrith, Faber Residence and Zyon Grand recorded strong launch-weekend sales.

Prime Core Central Region (CCR) launches also saw their strongest monthly sales since 2007, driven largely by Skye at Holland.

With 1,510 million-dollar HDB flats transacted in 2025, analysts say upgrader demand into private housing is likely to persist.

“Barring new cooling measures, we are cautiously optimistic that private residential prices could grow by 2.0 to 4. per cent  year-on-year in 2026  supported by low borrowing costs, increasing land prices and resilient buyer confidence, underpinned by still-low unemployment rates. HDB upgrader demand is still expected to persist, though overall momentum could slow.” Wong said.

PropNex echoed this view.
​
“With moderating price growth and low interest rates, we believe there is a window of opportunity in 2026 for prospective buyers, including HDB upgraders,” Fong said.

S-REITs outlook improving amid stabilising rates and stronger fundamentals

Office and retail space at Changi Business Park. Photo: Khalil Adis Consultancy.

Market watchers say Singapore-listed real estate investment trusts (S-REITs) are entering a more stable phase after several years of pressure from rising global interest rates and higher financing costs.

“Lower interest rates matter for REITs because they gradually reduce financing costs as debt is refinanced and make REIT yields more attractive relative to other low-risk investment options such as Treasury Bills,” said Nupur Joshi, CEO of the REIT Association of Singapore (REITAS).

Against this backdrop, S-REITs are expected to benefit from improved refinancing visibility and more predictable funding expenses.

Analyst sentiment has also turned more positive.

“Several research houses now expect the S-REIT sector’s distribution per unit (DPU) growth to resume in 2026, supported by steadier interest rates and resilient asset fundamentals,” Joshi added.

Singapore’s reputation as a well-regulated and transparent market for listed real estate vehicles continues to attract global institutional capital seeking stable, income-generating exposure in Asia.

Market initiatives aimed at deepening equity participation and liquidity could further support listed trusts, particularly those outside the largest benchmark indices.

“The Singapore equity market has also been in a bit of a tear due to international investors seeing Singapore as a safe and well-governed market, resulting in global capital flowing into Singapore, alongside stock-market reforms initiated under MAS’ Equity Market Development Programme. This benefits Singapore-listed REITs,” Joshi said.

Looking ahead, the office and retail segments are showing promising signs, although prospects remain uneven across property types.
​
“The Singapore office sector is expected to do well due to strong demand and limited supply. Singapore retail scene is also improving. For REITs with overseas properties, it will depend on the asset class and geography, but overall industrial, logistics and data centre REITs are expected to do well due to structural tailwinds,” Joshi said.