Analysts expect that the resale prices of apartments under the Housing and Development Board in Singapore will see moderate growth in 2026, resulting from increased supply of apartments, along with the impact of unstable global conditions on demand. This comes after the market showed additional signs of cooling, with the resale price index recording a decline of 0.1% in the first quarter of 2026, marking the first quarterly decline since 2019.
This decline followed five consecutive quarters of slow or stable price growth. Analysts noted that the data indicates a transition in the market towards a more sustainable phase, with expectations of growth ranging between 2% and 5% in prices.
Details of the Event
One of the main factors affecting the resale market is the significant increase in the supply of public housing. Mr. Mohan Sandrasegaran, Head of Research and Data Analysis at SRI, reported that demand will remain due to household formation and lifestyle needs, but the expanded supply line of apartments—both new and resale—is expected to maintain stable price growth.
Sandrasegaran added that "the ongoing increase in the supply of built-to-order apartments, especially in mature areas, is expected to play an important long-term role in supporting price stability in the resale market." The government also plans to launch approximately 19,600 built-to-order apartments in 2026, including over 4,000 apartments expected to be ready in less than three years.
Background & Context
Singapore is considered one of the countries facing significant pressures in the housing market, as many citizens seek suitable housing. In recent years, there has been an increase in demand for apartments, leading to a noticeable rise in prices. However, the government is working to increase the supply of apartments to meet the needs of the population.
In the second quarter of 2026, approximately 6,900 apartments will be offered across various towns, including Ang Mo Kio, Bishan, Bukit Merah, Sembawang, and Woodlands. This will help meet the underlying demand for new apartments in these areas.
Impact & Consequences
Amid unstable global conditions, conflicts in the Middle East may affect market expectations, especially if they lead to rising energy prices and continued inflationary pressures. In this context, buyers tend to adopt a more cautious approach, with some apartment owners potentially postponing upgrade plans, while others prefer built-to-order apartments over resale units.
Prices may also come under pressure if the conflict escalates and begins to affect borrowing costs, inflation, business conditions, and employment. Although the resale apartment market has not been fully impacted by the fallout from the Middle East conflict, it could face pressures if conditions worsen.
Regional Significance
The economic conditions in Singapore serve as an important indicator for many Arab countries facing similar challenges in their housing markets. An increase in the supply of apartments could affect prices in other countries, contributing to relative market stability. Additionally, geopolitical tensions in the Middle East may impact housing markets in Arab nations, necessitating precautionary measures.
In conclusion, the resale apartment market in Singapore appears to be heading towards a more sustainable phase, with expectations of moderate price growth. However, global conditions may cast a shadow over this growth, warranting close monitoring of future developments.