SINGAPORE: The resale price index for public housing fell for a second consecutive quarter, while private property prices continued to rise, albeit at a slower pace than the previous quarter.
In flash estimates released by the Housing and Development Board (HDB) on Wednesday (Jul 1), the resale price index fell by 0.3 per cent in the second quarter of 2026. It dipped by 0.1 per cent in the first quarter, falling for the first time in almost seven years.
Meanwhile, private residential property prices rose by 0.5 per cent in the second quarter, down from 0.9 per cent in the previous quarter, according to Urban Redevelopment Authority (URA) flash estimates.
Senior director of data analytics at Huttons, Lee Sze Teck, noted the HDB resale market had “remained sluggish”.
“Buyers are cautious in their offered prices in view of the uncertainties in the unemployment market,” he said. “Many buyers opted to try their luck for a BTO (Build-to-Order) flat especially in Prime locations.”
Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group, also cited a “weaker hiring outlook” as a factor affecting the HDB resale market.
“The softer job market and structural layoffs may instill greater prudence in homebuyers, as any changes can impact buyers’ financial confidence and borrowing capacity.”
She noted that in the second quarter, “overall prices dipped at a slightly faster pace, on the back of a decline of average prices across many towns”.
“Transaction volumes were also lower year-on-year, reflecting a general market slowdown.”
Of the 16 towns that registered quarterly resale price declines, the largest fall was seen in Serangoon, at 7.9 per cent, followed by Marine Parade (7.6 per cent) and Geylang (6.9 per cent), according to Ms Sun.
Resale activity also declined in the second quarter.
As of Jun 29, resale volume fell by 10.2 per cent to 6,268 transactions from 6,981 transactions in the same period last year.
The softer HDB resale market has led to fewer enquiries for resale flats and longer selling times, with such flats taking an average of two to three months to sell, Mr Lee said.
The market “may likely continue to stay flat” in the second half of 2026, he noted, pointing out that buyers will have more options from BTO projects and the 13,484 resale flats which will meet the five-year minimum occupation period (MOP) in 2026.
HDB will launch about 7,960 flats in Bedok, Geylang, Sembawang, Tengah, Toa Payoh and Yishun in the October sales exercise.
PRIVATE PROPERTY PRICES
URA data showed that prices of non-landed private residential properties decreased by 0.1 per cent, compared to the 1.3 per cent increase in the previous quarter. Prices of such properties in the Core Central Region rose 2 per cent, up from a 0.6 per cent increase in the preceding quarter.
Prices in the Rest of Central Region fell by 1.4 per cent, down from a 0.8 per cent increase last quarter, while prices in the Outside Central Region decreased by 0.2 per cent versus the 2.2 per cent increase in Q1.
Landed property prices increased by 2.6 per cent in Q2, up from the 0.4 per cent decrease in the previous quarter.
Sale transaction volume was broadly comparable between the first and second quarter.
URA said that its flash estimates are compiled based on transaction prices submitted for stamp duty payment and data on units sold by developers from Apr 1 to mid-June.
The Ministry of National Development (MND) previously announced on Jun 3 that land for 4,745 new private homes would be released in the second half of 2026.
The total confirmed supply for 2026 reached 9,320 as a result, bringing the total pipeline of private homes to about 61,000 units.
“The macroeconomic outlook remains highly uncertain,” URA and HDB said, urging households to “exercise prudence when purchasing property and taking out mortgage loans”.
On private home sales in the second half of the year, SRI’s head of research and data analytics Mohan Sandrasegeran noted that “market activity is expected to regain momentum as fresh wave of residential launches enters the market”.
“While inflationary pressures and a moderating economic outlook may lead some buyers to adopt a more cautious approach, we do not expect demand for new launches to weaken significantly,” he said.
“Instead, the market is likely to be buyers placing greater emphasis on location, pricing and overall value.”