Robust performance at major new launches
The private residential market kickstarted the year on a solid footing, with robust performance recorded at major new launches and sustained property price growth. Against a backdrop of heightened geopolitical uncertainty, market activity may become more selective and price-sensitive, with buyers gravitating towards market segments or projects that can offer the best value-for-money.
Overall private residential sales volume fell by 19.2% qoq or 25.5% yoy to 5,413 units in Q1 2026, or the second consecutive quarter of decline. The overall private residential sales volume was driven by the resale market, which constituted more than half (59.6%) of total sales volume in Q1 2026. On a quarterly basis, sales volumes across all types of sales have fallen, of which new sales volume saw the greatest decline (-31.5% qoq), followed by sub sales (-23.9% qoq) and resale (-8.6% qoq) volumes. Notably, sub sale volume has tumbled to 175 units as of Q1 2026, or the lowest level since Q1 2022.
Against a relatively limited new launch pipeline, recent new launches have continued to record robust sales performance, of which three out of four (75%) major private residential projects (projects with at least 100 units) launched in Q1 2026 selling more than 50% of their units during their month of launch. This compares to five out of six (83%) major projects during the same period a year ago (Q1 2025).
Overall private residential property prices grew for six straight quarters
Overall private residential prices rose 0.9% qoq in Q1 2026, marking the sixth consecutive quarter of increase, compared to 0.6% qoq growth in Q4 2025.
Following past four consecutive quarters of increase, landed residential prices fell by 0.4% qoq in Q1 2026, compared to a 3.4% qoq growth in Q4 2025. The recent decline in landed residential prices is likely to be transitory, with a return to growth expected in the coming quarters, underpinned by limited supply in the market.
Non-landed residential prices rebounded and grew by 1.3% qoq in Q1 2026, compared to a 0.2% qoq fall in Q4 2025. Non-landed residential prices were driven by the Outside Central Region (OCR), which rose by 2.2% qoq in Q1 2026. In comparison, the Rest of Central Region (RCR) and Core Central Region (CCR) prices grew by 0.8% qoq and 0.6% qoq respectively in Q1 2026.
Barring new cooling measures and an unexpected deterioration in global economic conditions, we are cautiously optimistic that private residential prices could still grow by 2.0-4.0% yoy in 2026. Notwithstanding downside risks from global geopolitical tensions, the market continues to be supported by strong underlying buyer demand and a still-accommodative interest rate environment. While HDB upgrader demand is still expected to persist, the overall momentum is slowing (HDB resale prices fell 0.1% qoq in Q1 2026, or the first fall in almost seven years).
Developer appetite for land remains healthy though caution might emerge amid an expected rise in construction costs
The continued momentum in the private residential market, supported by healthy new launch take-up rates and low levels of unsold inventory, has underpinned developer confidence and appetite for land banking. In Q1 2026, total unsold inventory rose by 8.1% qoq to 16,219 units and remained low compared to the ten-year annual average of 21,498 units.
While securing sites through the GLS programme is still the preferred route for landbanking, the collective sale market may provide opportunities to acquire freehold sites or well-located mid-sized sites. Also, competition for GLS sites has picked up, with the average bidders per site (private residential and EC) in Q1 2026 rising to 4.5 compared to 4.2 bidders per site over the same period last year (Q1 2025). Land prices have also remained on an upward trend, as evident from recent land sales such as the Dover Drive GLS site which was sold at a new benchmark land price of $1,556 psf ppr in the Rest of Central Region.
The en bloc market surprised on the upside, with the first successful residential collective sale in 2026 at Loyang Valley for $880 million in April. Although we are sanguine on a pickup in en bloc activity in 2026, transactions are likely to skew towards smaller sites with good location fundamentals, reflecting development risk considerations.
Going forward, in view of the elevated energy prices which might lead to a potential increase in development costs, developers are expected to adopt a more cautious bidding approach for development opportunities.
Private residential rents grew moderately in Q1 2026
Private residential rents recorded a slight 0.3% qoq growth in Q1 2026, rebounding from the -0.5% qoq fall in Q4 2025. Islandwide private residential vacancy rates increased by 0.2% points to 6.2% in Q1 2026.
Islandwide non-landed rents grew by 0.4% qoq in Q1 2026, picking up from the -0.1% qoq decline in Q4 2025. Non-landed residential rental growth was driven by the mass market OCR segment, which recorded 1.0% qoq rental growth, followed by the high-end CCR segment (+0.5% qoq rental growth).
On the other hand, mid-tier RCR rents fell by 0.2% qoq in Q1 2026, following past six consecutive quarters of increase.
Private residential rents are expected to grow by 2.0%-4.0% yoy in 2026, higher than 1.9% yoy in 2025, underpinned by a constrained supply pipeline and steady demand from international students. A mere total of 6,282 new private residential units is expected to be completed in 2026, significantly below the 10-year annual average of 10,837 units.
OFFICE
A Two-Tier Market
Flight-to-quality demand continues to shape market performance. Islandwide Category 1* office vacancy tightened for a fourth consecutive quarter to 8.6% in Q1 2026, while Category 2* vacancy remained higher at 11.9%. This reflects sustained occupier preference for modern, well-located CBD offices that offer strong connectivity, amenities and workplace quality, as firms prioritise efficiency, talent attraction and long-term resilience.
* According to URA, Category 1 refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area. Category 2 refers to the remaining office space in Singapore which are not included in “Category 1”.
Leasing activity in the Central Region remained resilient despite softer rents (-0.2% qoq in Q1 2026), supported by tight availability, particularly for high-quality office space. Office net demand reached about 140,000 sf in Q1 2026, marking a fourth consecutive quarter of positive net absorption, while new supply remained subdued at negative 32,000 sf, this led to Central Region office vacancy rates to tighten to 10.5% in Q1 2026.
The Downtown Core remained the primary demand driver in the Central Region, recording 118,000 sf of office net demand in Q1 2026, resulting in the Downtown Core vacancy rate tightening for a fourth straight quarter to 9.3% in Q1 2026 from 11.2% in Q1 2025.
Demand conditions outside the Downtown Core remained uneven. In Q1 2026, office net demand in Orchard stayed negative at 11,000 sf, while the Rest of Central Area recorded positive net absorption of 54,000 sf. Over the past 12 months to Q1 2026, however, both submarkets saw net contractions, with Orchard posting cumulative net demand of negative 32,000 sf and the Rest of Central Area recording a larger net outflow of 377,000 sf. This reflects large occupiers’ continued preference for Downtown Core locations, alongside the more limited availability of comparable high-quality office stock in these fringe submarkets.
Looking ahead, Central Region office rents are expected to continue trending upward, supported by the resilience of the CBD Grade A segment. While geopolitical risks and inflation uncertainty may dampen occupier confidence in the near term and result in some decision paralysis, underlying demand for high-quality space remains firm. Anecdotally, some upcoming Grade A developments completing in 2028 are already seeing healthy enquiry and pre-commitment interest.
CBD Grade A* office rents are forecast to grow 4.0-7.0% in 2026, underpinned by limited new completions in 2026 and 2027 and elevated development costs, which are expected to continue supporting rents even as demand moderates. In Q1 2026, CBD Grade A* rents reached $11.36 psf pm, growing 1.4% qoq.
*CBD Grade A office rents are gross effective rents across a Cushman & Wakefield-defined basket of Grade A office buildings located within Marina Bay, Raffles Place, Shenton Way, Tanjong Pagar, City Hall, Orchard and Bugis.
The Central Region office price index reversed its downtrend in Q1 2026, rising 0.2% qoq after five consecutive quarters of decline, underpinned by an increase in the median unit price to $2,230 psf from $2,169 psf in Q4 2025 and supported by notable transactions such as Altallo Asset Management’s $175 million acquisition of 158 Cecil Street. While Central Region strata office transaction activity softened to 58 caveats lodged in Q1 2026, down from 72 in Q1 2025, demand for prime strata assets remains supported by limited supply, easing interest rates and Singapore’s safe-haven appeal.
RETAIL
Growth Loses Momentum Amid Ongoing Challenges
Retail rents in the Central Region softened in Q1 2026 as cost pressures and selective leasing behaviour continued to shape market conditions. Rents declined by 0.6% qoq in Q1 2026, reversing three consecutive quarters of growth. Rising macroeconomic uncertainty and persistently high operating costs have been weighing on retailers’ expansion appetite and putting downward pressure on rents of non-prime retail stock.
Leasing activity in Orchard remains driven by prime malls, with brand movements largely characterised by relocations and selective expansions. Recent luxury openings such as Zimmermann, Marni and Jil Sander at Paragon, alongside Jacob & Co. at Takashimaya Shopping Centre, underscore sustained interest in high-footfall prime locations. Concurrently, active F&B leasing, including Molly Tea at Orchard Central, and Fire Ramen and Gyushi at The Centrepoint, continues to support footfall.
That said, Orchard retail net demand remained negative at 32,000 sf in Q1 2025, and Orchard vacancy rates edged up modestly to 7.1% from 6.8% in the previous quarter. This reflects a bifurcated retail landscape where non-prime malls in Orchard lacking a strong tenant mix, continues to face leasing challenges.
The suburban retail market in Singapore remained resilient in Q1 2026, supported by structurally steady residential catchment demand. Outside Central Region retail net demand registered a healthy 140,000 sf in Q1 2026, extending the 215,000 sf recorded in the preceding quarter. This outpaced retail net supply of 97,000 sf in Q1 2026, tightening vacancy rates to 4.1% from 4.3% in the previous quarter, remaining well below the islandwide average of 6.3% and underscores the sustained strength of suburban retail locations.
Leasing momentum in the suburbs was driven by steady backfilling. Large-format exits, including multiple Cathay Cineplex locations, were taken up by other cinema operators such as Golden Village and SAS Cineplex. Demand was further supported by mainstream F&B concepts such as Steak 99 and Dabba Street, alongside lifestyle and sports retailers like LIV ACTIV and SneakSurf, as well as beauty and wellness brands like ELEMIS London.
Singapore’s retail market outlook remains broadly stable, with prime rents expected to see measured growth over the medium term, supported by a tight supply pipeline. Only an annual average of 0.4 msf of new retail spaces are expected to enter the market from 2026-2029.
However, global economic uncertainty and potential inflationary pressures may weigh on consumer spending and raise operating costs for retail tenants, especially F&B operators. Consequently, retailer expansion sentiment could soften, with ongoing retail churn reflecting the exit of weaker players.
