As financing costs ease and regulatory adjustments are actively reviewed, Singapore’s property market is poised for a recalibration in 2026, with collective sale activity expected to rebound even as structural challenges for developers remain pronounced.
Market expectations are being shaped by a confluence of financing, regulatory and supply-side dynamics, with investors closely monitoring the impact of potential changes to the en bloc regime on land recycling and project feasibility. At the same time, a surge in MOP flat supply from 2026 to 2028—amounting to over 53,000 units—is expected to moderate resale price growth and shape developers’ assumptions on future demand and achievable selling prices.
Investors are closely tracking en bloc rule shifts that could reshape land recycling, pricing power and project viability
The collective sale market, subdued in recent years, is projected to see more attempts in 2026 as borrowing costs soften, improving developers’ ability to underwrite larger sites and higher quantum deals. With developers still showing a clear preference for GLS sites over private collective sale plots, vendors of older projects may need to temper price expectations to secure genuine bids.
The Tan Boon Liat Building, marketed in February 2025 at S$1.15 billion, is targeting a fresh tender early 2026, signalling renewed confidence among marketing agents and owners in securing bids under more favourable cost conditions.
Industry participants are also observing the Ministry of Law’s ongoing review of en bloc rules, including the possible reduction of the consent threshold from 80% to 70%, a shift that could, if implemented, materially increase the pool of viable collective sale candidates.
Despite this prospective rebound, developers continue to face elevated land, construction and compliance costs, together with limited redevelopment potential on certain ageing sites, which constrain achievable margins and suppress bid aggression. Among the approximately 6,500 conservation shophouses in Singapore, those with distinctive heritage features may attract developer interest as rare alternatives to conventional en bloc opportunities, though strict restoration guidelines under the URA limit redevelopment flexibility.
While some stakeholders argue that abolishing Additional Buyer’s Stamp Duty for developers could be offset by higher Buyer’s Stamp Duty collections from increased transaction activity, ABSD obligations, where applicable, and market risks still weigh on acquisition decisions.
Examples such as Thomson View’s redevelopment potential, yielding about 1,240 units, illustrate the scale efficiencies sought, yet not all older condominiums offer comparable intensity gains or clear planning upside.
Relaxed rules, if confirmed, may enhance the prospects of older projects, particularly those with untapped plot ratios or favourable locations, but financial modelling remains sensitive to construction inflation, sales absorption and price caps in a market where private home prices are forecast to rise only a moderate 3–4% in 2026.
New private launches are expected to fall to about 8,400 units (excluding executive condominiums) from 11,500 in 2025, while new home sales are projected at 8,000–9,000 units and resale transactions at 14,000–15,000 units, underscoring a disciplined supply pipeline and a cautious yet active development landscape.
