Interest Rate Expectations Shift Buyer Behaviour in Singapore Property Market

Singapore's property market is experiencing a shift in buyer behaviour as interest rate expectations continue to rise, with the median condo price now at SGD 1.8 million.

This shift matters now because it indicates a change in the way buyers are approaching the market, opting for more affordable options such as HDB resale flats and executive condos (ECs) in new towns like Tengah and Jurong. The popularity of these areas can be attributed to their proximity to amenities and transportation hubs, such as the Jurong East MRT station and the upcoming Tengah MRT station. Organisations like the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA) have also played a crucial role in shaping the property market, with initiatives like the Prime Location Public Housing (PLH) model and the Master Plan 2019.

In areas like Districts 9, 10, and 11, which are known for their prime locations, buyers are becoming more cautious, opting to wait and see how the interest rate situation unfolds before making a purchase. In contrast, neighbourhoods like Tiong Bahru and Katong are seeing increased interest, with their charming streets, such as Tiong Bahru Road and East Coast Road, and popular venues like the Tiong Bahru Market and the Katong Shopping Centre, making them attractive to buyers. The Singapore Real Estate Exchange (SRX) and the Real Estate Developers' Association of Singapore (REDAS) have also reported increased activity in these areas.

Market Trends and Data

According to data from the URA, the number of EC units sold in the first half of 2026 increased by 15% compared to the same period last year, with prices ranging from SGD 800,000 to SGD 1.2 million. The HDB resale market also saw a significant increase, with 5,893 flats sold in June 2026, a 10% increase from the previous month. The median resale price for HDB flats in non-mature estates like Tengah and Jurong was SGD 450,000 and SGD 520,000 respectively, as of June 2026. These statistics indicate a clear shift in buyer behaviour, with more buyers opting for affordable and practical options.

As the interest rate situation continues to evolve, buyers are advised to keep a close eye on the market and plan their purchases accordingly. With the Monetary Authority of Singapore (MAS) closely monitoring the situation, buyers can expect more guidance and regulations to be implemented in the coming months. For now, buyers should focus on finding the right property that meets their needs and budget, and consider seeking advice from reputable real estate agents and financial advisors. As the property market continues to shift, one thing is certain - interest rate expectations will play a significant role in shaping buyer behaviour in the months to come.