Which factors will influence Singapore residential leasing in 2026?

Leasing is expected to remain largely flat this year.

Singapore’s home leasing market faces potential headwinds as weaker business sentiment and job market volatility could impact hiring, relocations, and tenants’ rental budgets, analysts said.

Leasing volume in the third quarter grew by 24.2% quarter-on-quarter, representing a 3.2% year-on-year increase. According to Savills, the third quarter generally marks the peak season for residential leasing, driven by the annual influx of expatriates and international students in line with global corporate relocation cycles and academic calendars.

In a separate report, PropNex said overall rentals increased by 1.2% in Q3 2025, bringing total rental growth in the first nine months of the year to 2.4%. “This indicates a marked improvement from the 1.9% rental decline in 2024, and perhaps hints at a gradual recovery in the rental market,” PropNex noted.

Analysts observed that tenants seemed largely undeterred by rising rentals. Resilience in the market may be supported by households seeking interim housing while waiting for new homes to be completed, as well as the high cost of home ownership, which channels some households toward leasing.

Population growth has also helped sustain rental demand. As of June 2025, Singapore’s population reached a new high of 6.11 million.

JLL’s Q3 report highlighted a reduction in the available supply of prime non-landed homes, due to limited new project completions and stock withdrawals, which led to a marginal decline in vacancy rates.

However, Savills cautioned that these figures may mask underlying weaknesses, as rental increases in the quarter could have been front-loaded in July and August, coinciding with the start of the academic year at international schools.

“The completion of 1,776 new private residential units in the quarter provided tenants with modern facilities, appliances, and bathroom fixtures,” Savills said. “This newness factor may have encouraged some tenants to pay higher rents, occupy entire units rather than share, or move from public flats to private residences.”

Looking ahead, Savills predicts the leasing market will remain flat by the end of 2025, while PropNex expects private home rentals could see modest growth of 2% to 3% in 2026