Bukit Panjang, Sengkang Emerge as Suburbs Where Buying Is Now Cheaper Than Renting

In a reversal that would have seemed improbable a decade ago, new analysis shows that buying a condominium unit in certain Singapore suburbs is now less expensive on a monthly basis than renting similar homes. Bukit Panjang and pocketed parts of Sengkang are at the top of the list, according to figures compiled in June by property analytics firm SRX Property.

This growing gap comes at a time when rental prices have soared to historic peaks, squeezing tenants across the city. Persistent rental demand—from new permanent residents, incoming expats, and Singaporeans waiting out construction delays—has pushed average condominium rents to SGD 5.40 per square foot in June, up 34% from mid-2021, based on Urban Redevelopment Authority (URA) data. At the same time, softening buyer sentiment and the recent round of cooling measures have tempered sales prices in several non-prime estates, setting the stage for this rare affordability crossover.

Bukit Panjang, Sengkang: Surprising Value Plays

Take Bukit Panjang, long considered one of Singapore’s more affordable towns. At Cashew Heights along Cashew Road, a 900-square-foot two-bedroom unit recently resold for SGD 1.14 million. With a 25-year loan at prevailing rates of 3.1%, monthly mortgage payments—including monthly maintenance—total around SGD 3,990. That’s sharply below average rents for similar condos in the area, now advertised at SGD 4,400 and above, based on data from 99.co.

Over in Sengkang, landlords are asking SGD 4,000 per month for modest three-bedroom units at Jewel @ Buangkok. But buyers picking up units in the SGD 1.25 million range—slightly above last year’s closing prices—are finding their monthly payments (factoring in interest and fees) come in several hundred dollars less. "Units in Fernvale and the Compassvale stretch are seeing similar trends, especially for older leasehold projects," said an agent with ERA Realty Network who handles both buying and leasing transactions in District 19.

Where the Numbers Cross Over

This affordability tipping point isn’t citywide—prime condo clusters in Orchard, Newton and Novena are still firmly in favour of renters due to steeper capital values. But in a data set covering 43 suburban projects, SRX Property pinpointed eight developments in Bukit Panjang, six in Sengkang, and five in Yishun where total monthly repayments under typical financing scenarios have now dipped below median asking rents. The median resale price for a mass-market suburban condo was SGD 1.42 million in Q2 2026, while the corresponding median rent reached SGD 4,307, URA statistics confirm.

According to OCBC Bank’s latest mortgage update, average fixed rates have stabilised at 3.05% for new loans as of July, down from the high of 3.8% nine months ago. This slight fall has given well-capitalised owner-occupiers a rare window to take advantage, especially those eligible for CPF drawdowns or who qualify for the new Resale First-Timers Grant launched in March. The grant, administered by HDB for upgraders, provides up to SGD 80,000 in support for eligible buyers shifting from public housing to a resale unit.

For tenants reconsidering their next move as leases come up for renewal, running the numbers can pay off—literally. "Factor in all the extras, from buyer’s stamp duty to loan eligibility, and for some the maths only works out in these very specific postcodes," the ERA agent added. But with rents unlikely to cool quickly and more cooling measures not ruled out for the rest of 2026, industry watchers expect the rent-vs-buy equation to stay tilted in favour of owner-occupiers in towns like Bukit Panjang and Sengkang for at least the next quarter.

Potential buyers weighing a move should pay attention to their own eligibility, calculate total upfront and recurring costs beyond basic mortgage figures, and watch for new grant or policy tweaks likely when the National Day Rally takes place next month. SRX and URA publish detailed transaction histories by project and postcode. As ever, the best deals come to those willing to study the fine print—and act before the tide shifts again.