SORA went up this month. Floating mortgage rates went down.

When rates move in different directions, which one actually matters for buyers?

For most buyers, the mortgage rate matters more day to day.

Floating packages came down to 1.27 percent this month, so monthly repayments are actually lower than last month despite SORA moving up.

Borrowing costs remain relatively low, and that continues to keep the market accessible.

Market Outlook

Housing indicators are beginning to stabilise across Singapore. Private home prices continue to edge up slightly, while the HDB resale market has cooled slightly after several years of strong growth.

At the same time, rental growth has largely plateaued as new supply enters the market.

Together, these trends suggest the market may be moving into a more balanced phase.

Indicators at a Glance

REA Property Price Index – HDB Resale:

(–0.20% MoM | –0.89% YoY)

Prices are easing, with slightly more room for negotiation.

REA Property Price Index – Rental (Condominium):

(+0.10% MoM | +0.20% YoY)

Rents are rising again, with small increases on both a monthly and annual basis.

SORA: 1.17%

(+6 bps MoM | –100 bps YoY)

SORA rose 6 basis points this month. Fixed rates are at 1.35 percent, slightly higher than last month. And floating packages are at 1.27 percent, lower than last month.

What This Means for Borrowers 🔍

Lower Borrowing Costs

Floating packages are at 1.27%. If you’ve been considering refinancing, this is a good time to run the numbers and check whether switching will lower your repayments.

Steady Private Demand

Condo prices dipped slightly this month but remain positive year on year. For buyers waiting for a broad price correction, current data does not indicate a significant pullback. The focus remains on selecting the right unit at the right price.

Stabilising Rents

Condo rents have stabilised and are slightly higher on both a monthly and annual basis. Investors who bought during the high-rate period may begin to see gradual improvement in rental yields.

Gradual Market Recovery

When borrowing costs are low and prices are stable, buyer activity tends to pick up. If you are planning to buy in 2026, the second half of the year may see increased competition if market conditions remain unchanged.

Summary View

Prices are steady overall, while rents are showing slight improvement. The market is moving at a different pace across each segment.

If you are still paying over 2% for your home loan, then now's a good time to talk to Moshin!

Moshin is Singapore's first AI-Powered Loan Advisor, ready to assist you 24/7 and best of all, it's totally free for you. Start your refinancing or home loan conversation with Moshin today!

Chat with Moshin or visit Moshin's home to find out more 🐾

Disclaimer: The information and insights provided in this article are for informational purposes only and are based on Crestbrick’s independent research and views. While we strive to ensure accuracy and reliability, we do not guarantee the completeness, correctness, or timeliness of the data presented. Real estate investments are subject to various risks, including but not limited to market fluctuations, changes in economic conditions, interest rate volatility, regulatory shifts, liquidity constraints, and unforeseen property-specific risks. Past performance is not indicative of future results, and investment outcomes may vary. This article does not constitute investment, financial, or professional advice and should not be relied upon as such. Investors should conduct their own due diligence and seek advice from qualified professionals before making any investment decisions.