Singapore Warns of Property Bubble as Prices Hit 15-Year High

The Monetary Authority of Singapore issued a stark warning that the city-state's property market is showing signs of overheating, with residential prices climbing 2.8% in the first quarter of 2026 alone, marking the 12th consecutive quarterly increase. Average private home prices have now reached S$1,850 per square foot, a level not seen since 2011.

MAS Managing Director cautioned that additional cooling measures are under active consideration if price growth does not moderate in the coming quarters. The regulator pointed to surging demand from wealthy foreigners relocating to Singapore and a constrained land supply as key drivers. Mortgage lending has grown 18% year-on-year, with household debt-to-income ratios approaching levels that triggered intervention in previous cycles.

The Straits Times Index fell 0.4% on the announcement, with property developers CapitaLand Investment and City Developments declining 2.3% and 2.8% respectively. Banking stocks held relatively steady as mortgage demand remains robust, but DBS and OCBC both noted in recent earnings calls that they are tightening underwriting standards for property loans in anticipation of regulatory action.