Singapore’s prime residential market is poised for growth, with capital values projected to rise between 2% and 3.9% in the second half of 2026. According to the report by Savills, this positions Singapore among the top performers globally, with only seven of the 30 cities tracked by the World Cities Prime Residential Index expected to achieve similar growth. These cities include Cape Town, Seoul, Kuala Lumpur, Lisbon, Madrid, and Barcelona.
Modest Gains in H1 2026
In the first half of 2026, Singapore’s prime capital values increased by 0.4%, a modest but steady rise. Rents also climbed by 1.7%, outpacing the 1.1% average across the 30 cities in the index. This rental growth accelerated from 0.5% in the second half of 2025, indicating a strengthening market.
Despite these gains, Singapore maintains its position as Southeast Asia’s most expensive prime residential market. As of June 2026, prices stood at US$1,850 per square foot, significantly surpassing Kuala Lumpur at US$280 per square foot and Bangkok at US$1,120 per square foot. Globally, Singapore ranks 10th for prime residential prices, trailing behind Tokyo and Hong Kong, which command US$3,140 and US$3,750 per square foot, respectively.
Singapore’s prime rents, at US$1.06 per square foot per week, place it joint-eighth globally alongside Milan, ahead of Seoul, Bangkok, and Kuala Lumpur. This reflects the city-state’s continued appeal to both local and international tenants, despite its high property prices.
Global Context and Regional Performance
Globally, average prime residential capital values increased by 0.6% in the first half of 2026, with 60% of the monitored cities recording gains. Prime rents rose by 1.1%, continuing a trend since mid-2022 where rental growth has outpaced capital value growth. This shift is attributed to affordability pressures and economic uncertainty, prompting some buyers to prioritize flexibility over ownership.
In the Asia-Pacific region, performance was mixed. Tokyo emerged as the strongest market globally, with prime capital values rising 7% in the first half and 20.4% year-on-year, driven by strong demand and a shortage of prime housing. Seoul also performed well, with capital values up 4.1% and rents rising 4.4%. In contrast, Hong Kong remained broadly flat, while Beijing, Shenzhen, Guangzhou, and Shanghai all recorded capital value declines. Bangkok saw both capital values and rents fall by more than 5%, and Sydney experienced a 3.3% drop in values despite a 2.8% increase in rents.
The regional disparities highlight the varying impacts of local economic conditions, supply trends, and international demand on prime residential markets.
Factors Driving Singapore’s Market
The report from Savills emphasizes that Singapore’s market remains fundamentally strong, supported by resilient demand and higher land prices, which sustain pricing expectations. Alan Cheong, executive director of research and consultancy at Savills Singapore, noted that the modest first-half growth masks a market that is “fundamentally well supported.” Higher land prices, driven by competitive bidding at government land sales, have bolstered developer confidence and maintained upward pressure on property values.
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Looking ahead, cities with limited supply, growing household wealth, and sustained international demand are expected to outperform. Kelcie Sellers, associate director of Savills World Research, highlighted that relative value, lifestyle appeal, and long-term economic fundamentals will become increasingly important in determining prime residential performance. Singapore’s strong economic fundamentals, including its stable political environment, robust legal framework, and high quality of life, continue to attract international buyers and investors.
Given these factors, Singapore’s prime residential market is well-positioned for the anticipated growth in the second half of 2026. The city-state’s ability to maintain its appeal to both local and international buyers, coupled with its constrained supply and growing wealth, sets the stage for continued performance.
Resilient demand and higher land prices are key factors sustaining pricing expectations in Singapore’s market. The government’s careful management of land supply through the Government Land Sales (GLS) programme ensures that new developments are aligned with market demand, preventing oversupply and supporting price stability.
Cities with constrained supply, growing household wealth, and sustained international demand are likely to outperform in the future. Singapore’s strategic location, world-class infrastructure, and reputation as a safe haven for wealth continue to attract high-net-worth individuals and families seeking prime residential properties.
Long-term economic fundamentals, relative value, and lifestyle appeal will play a significant role in shaping prime residential performance. Singapore’s consistent economic growth, coupled with its lively cultural scene and excellent education and healthcare systems, enhances its attractiveness as a prime residential destination.
With these elements in place, Singapore is set to achieve the projected growth in its prime residential market by the end of 2026. The market’s strong foundation and favorable conditions indicate a positive outlook for Singapore’s prime residential sector, solidifying its position as a top performer globally.
By 2026, Singapore’s prime residential market is expected to reflect its robust economic and lifestyle appeal, further cementing its status as a leading global city for luxury real estate.
