Loss-Making Private Home Resale Deals on the Rise in Q2 2026 as Price Growth Moderates

Cushman and Wakefield research head Wong Xian Yang noted that overall levels of loss-making transactions will continue to stay low, given still-rising home prices. The majority of these deals, at 64 per cent, were in the Core Central Region, while the Rest of Central Region (RCR) and Outside Central Region (OCR) accounted for the rest at 18 per cent each. Wong attributed the rise in loss-making transactions to a more selective home-buying environment as the pace of price growth moderated.

In Q2, the overall price index rose 0.5 per cent, slowing from a 0.9 per cent increase in the prior quarter. For non-landed private homes, prices fell 0.1 per cent, swinging from a 1.3 per cent rise in Q1. This brought the price growth of private residential properties to 1.4 per cent in the latest half-year, down from a 1.8 per cent increase in H1 2025.

Wong noted that loss-making transactions remained “relatively low”, below the five-year average of 5.3 per cent from 2021 to 2025. They are also well below Covid-19 pandemic highs, at less than one-fifth of the 21.8 per cent record in Q2 2020, when market uncertainty was at its peak.

The deal that spilled the most red ink by quantum was a 2,852 sq ft unit on the 50th floor of 99-year leasehold The Orchard Residences. It was sold for S$10.2 million or S$3,576 psf in late June, 17 per cent lower than its original purchase price of S$12.3 million or S$4,312 psf in November 2013. On a holding period of 12.6 years, this works out to an annualised loss of 1.5 per cent.

By percentage, the biggest loss-making resale deal was a 624 sq ft unit at the 103-year leasehold The Scotts Tower, which changed hands at S$1.1 million or S$1,762 psf in late June. This was nearly half of its previous price of S$2.1 million or S$3,402 psf in July 2012, representing a loss of just over S$1 million. That translates to an annualised loss of 4.6 per cent over a 14-year holding period.

Meanwhile, the most lucrative resale deal in Q2 was for a 6,954 sq ft duplex penthouse unit at freehold luxury development Nassim Park Residences. The most profitable deals in percentage gains were executive condominiums, with gains of 13.8 to 15.3 per cent. Topping this was a 2,465 sq ft unit at The Tampines Trilliant, which changed hands at S$3.5 million or S$1,420 psf in mid-April.

Going forward, Wong reckons that overall levels of loss-making transactions will continue to stay low, given still-rising home prices. Barring a significant deterioration in economic or market conditions, private residential prices are expected to rise by 2 to 4 per cent for the year in 2026, he said.

Wong added that this would be supported by “resilient” underlying local demand and elevated replacement costs which should underpin current pricing levels. On 28 July, the government lifted a 15-month wait-out period imposed on private homeowners looking to buy an HDB flat in the resale market, a move that could support more transactions.

The restriction was introduced in 2022 to moderate demand for public housing resale flats in a time when prices were surging. Wong said its removal is unlikely to have a material impact on private residential resale prices or the share of loss-making transactions, though some private homeowners may choose to sell their private property and purchase an HDB flat following the removal of the wait-out period.