New launch success lifts an otherwise quiet quarter

• Overall sales activity in the Prime segment slowed in the quarter, with both new launch and secondary market transactions falling due to the seasonal lull from the Lunar New Year festivities in February.
• However, the quarter’s total sales tally was significantly bolstered by the March launch of the 455-unit River Modern. Its strong performance, selling 413 units, accounted for about 80% of total sales for that month, as at the time of this writing.

Vacancy dips on limited new completions

• While four Prime non-landed projects received their Temporary Occupation Permits (TOPs) in Q1 2026, the issuance for two other completed projects was delayed to the next quarter pending government review.
• The limited number of new officially completed homes resulted in a marginal slip in the overall vacancy rate in the Prime districts for the quarter.

Prime non-landed capital values continue to rise even as rental trends diverge

• Fewer new Prime project launches and resilient demand continued to drive price increases for Prime non-landed resale homes in Q1 2026. Relatively lower interest rates and global uncertainties also bolstered demand from those seeking such assets for wealth preservation.
• Global uncertainties and tenant cost-consciousness drove rents of Luxury Prime non-landed homes down marginally in Q1. On the other hand, Typical Prime home rents held stable, supported by consistent demand from tenants seeking more affordable Prime leasing options.

Outlook: Flight-to-safety supports prices, flight-to-value bolsters typical Prime rents

• While the prospect of interest rate hikes from the Iran war-driven inflation is a concern, Prime home prices should remain supported by local and safe-haven demand seeking to preserve wealth. However, this uncertainty could temper overall market activity.
• As economic headwinds slow hiring, a resulting flight-to-value among cost-sensitive tenants is expected to drive leasing demand in the Typical Prime segment, potentially allowing its rents to post stronger growth than the costlier Luxury Prime market in 2026.