Singapore Property Market 2026 Deep Dive: REIT Outlook, HDB MOP Wave, and Property Tax Reforms

In 2026, Singapore's real estate market is undergoing a structural adjustment. On the rental side, over 50,000 HDB flats will reach their Minimum Occupation Period (MOP) in the next three years, flooding the leasing market with new supply. On the tax front, IRAS has announced a 10-15% property tax rebate for owner-occupied properties to cushion rising Annual Values. Meanwhile S-REITs are showing more optimistic prospects amid stabilizing interest rates.

S-REITs are looking optimistic in 2026. RHB Bank anticipates better performance driven by moderating interest rates. Industrial REITs are leading due to rising logistics and data center demand, while retail REITs are expected to see high single-digit rental reversions.

Over 50,000 HDB flats reaching MOP means a significant influx of rental supply, intensifying competition among landlords. For investors holding private residential rentals, the impact is mainly on the mid-to-low end market.

Owner-occupied HDB flats get a 15% property tax rebate, private properties get 10% (capped at S$500). These only apply to owner-occupied properties. Overseas investors' rental properties do not qualify, and rising Annual Values mean actual tax burden continues increasing.

60% ABSD remains the biggest barrier. S-REITs offer indirect channels, especially industrial logistics and data center segments. Buyers with PR status can explore value deals in core areas.

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