TL;DR
Interest rate impact analysis for Q3 2026. Current SORA: 3.25%.
Interest Rate Impact: Q3 2026
Analysing how interest rate movements affect condo affordability and transaction volumes. Interest rate benchmarks are published by the MAS SORA dashboard.
Key Takeaways
- Current 3-month compounded SORA: 3.25%
- Typical mortgage rate (SORA + 0.75%): 4.00%
- Every 0.5% rate increase adds ~$250-300/mo to a $1M mortgage
- TDSR constraints mean higher rates directly reduce maximum loan quantum
3.25%
Latest SORA Rate
4.00%
Typical Mortgage Rate
Elevated Interest Rates
SORA is at 3.25%. Higher rates reduce borrowing capacity under TDSR.
Quarterly Transaction Trend
| Quarter | Sales Volume | Avg PSF |
|---|---|---|
| Q4 2025 | 7,277 | $2,196 psf |
| Q1 2026 | 6,925 | $2,096 psf |
| Q2 2026 | 6,605 | $2,052 psf |
| Q3 2026 | 115 | $2,113 psf |
Mortgage Impact Scenarios
Monthly repayment for a $1,000,000 loan over 25 years:
| Interest Rate | Monthly Payment | Total Interest | Impact |
|---|---|---|---|
| 2.5% | $4,486 | $345,850 | Normal |
| 3.0% | $4,742 | $422,634 | Normal |
| 3.5% | $5,006 | $501,871 | Moderate |
| 4.0% | $5,278 | $583,511 | Moderate |
| 4.5% | $5,558 | $667,497 | High strain |
| 5.0% | $5,846 | $753,770 | High strain |
Interest Rate Outlook & MAS Policy
Editorial analysis for this section is being prepared.
Frequently Asked Questions
How do interest rates affect property prices?
Higher rates increase mortgage costs and reduce buyer purchasing power under TDSR limits, which can moderate demand.
What is the current SORA rate?
The latest 3-month SORA is 3.25%.
Methodology & Sources
The dataset behind this report spans Q3 2026; we refresh it every quarter.
Transaction data sourced from URA REALIS.
- Interest rate data from MAS SORA dashboard.
- ABSD rates from IRAS ABSD rates.
Price-per-square-foot (PSF) here means the median deal in the period; means are reserved for volume-weighted aggregates explicitly labelled as such.