Family-sized home demand to spur non-landed segment growth in 2025

Rental growth is expected to range between 1% and 3% in 2025.

In Q4 2024, rental rates across the mass-market, mid-end, and high-end segments of non-landed homes were fairly unchanged, decreasing marginally by under 1%, Knight Frank reported.

Knight Frank attributed this to the stiff competition amongst smaller available units in these segments as landlords who previously refused to adjust their asking rates have now rationalised their expectations to keep their units occupied.

On the flip side, rents in the ultra-luxury segment gained 6% in Q4, due to the demand for family-sized units. 

Notably, expatriate families continued to prefer renting over buying due to the hefty Additional Buyer’s Stamp Duty (ABSD) imposed on foreign homebuyers.

Knight Frank expects rental growth to range between 1% and 3% in 2025 due to renewals and continued interest in family-sized inventory.

Meanwhile, prices are projected to grow between 3% and 5%, supported by moderate-to-healthy take-up rates at new launches in the year ahead.

In addition, Knight Frank projects that non-landed new sales volumes will likely range between 7,000 and 9,000 in 2025, with overall non-landed home transactions expected to range from 19,000 to 23,000.