Overview
SORA edged lower this month, while both fixed and floating mortgage rates continued to fall. For buyers, the key takeaway is that financing costs remain attractive: floating mortgage packages are now at 1.28%, while the lowest fixed rates have eased to 1.40%. With mortgage rates trending lower and borrowing conditions remaining favourable, affordability continues to support market activity despite broader economic uncertainty.
Prices ease, but the market holds firm
Private residential prices softened slightly this month, but the overall market remains resilient. Condominium prices dipped 0.10% month-on-month, though they are still 5.32% higher than a year ago, suggesting that buyers remain active, albeit more selective.
The rental market saw a modest decline of 0.39% month-on-month, but rents remain 0.90% higher year-on-year, indicating that leasing demand is still holding up. HDB resale prices also slipped 0.10% this month and are now 1.78% lower than a year ago, signalling a more balanced resale market with greater room for negotiation.
SORA and mortgage rates
SORA now stands at 1.07%, down 1 basis point month-on-month and 49 basis points year-on-year. Fixed mortgage rates have eased to 1.40%, while floating mortgage packages have fallen further to 1.28%. Compared to a year ago, financing costs remain significantly lower, helping to support purchasing activity (figures as of 12 June from Real Insight/MAS/Loan Expert).
What this means for borrowers
Both fixed and floating mortgage rates moved lower this month. Floating packages at 1.28% remain highly competitive, providing opportunities for homeowners to review refinancing options and potentially reduce monthly repayments.
Although condominium prices dipped 0.10% this month, annual growth remains strong at 5.32%. Buyers waiting for substantial price declines may find that the market continues to hold firm, particularly in well-located projects. Condo rents eased slightly on a monthly basis but remain positive year-on-year, so investors can continue to expect relatively stable rental demand, even as the market normalises from the sharp rental growth seen in previous years.
With HDB resale prices down 1.78% year-on-year, buyers may encounter more realistic seller expectations and improved negotiating opportunities compared to recent years. Lower mortgage rates combined with generally stable property prices create a supportive environment for buyers — if financing conditions remain favourable through the second half of 2026, transaction activity could gradually increase as confidence improves.
