Private rents rise 0.4% as demand rebounds in Q1

Across the board, rents climbed in all market segments.

Singapore’s private rental market recorded a modest uptick in the first quarter of 2025, reversing a period of stagnation as demand returned following the year-end lull.

According to OrangeTee’s latest market report, “overall private rents rose marginally with small increases observed for both non-landed and landed properties.”

The Urban Redevelopment Authority’s (URA) rental index showed private residential rents (excluding Executive Condominiums) increased by 0.4% in Q1. Landed properties rose by 0.3%, whilst non-landed rents grew by 0.5%.

Across the board, rents climbed in all market segments. The Core Central Region (CCR) and Rest of Central Region (RCR) saw 0.4% increases, whilst the Outside Central Region (OCR) bounced back with a 0.7% rise, after a 0.8% decline in Q4 2024.

The report attributed this to imbalances in supply and demand: “The rental growth observed across all market segments was within expectation, given that demand likely outstripped supply in some locations.”

Demand metrics strengthened as well. Rental transactions for private non-landed homes (excluding ECs) increased by 3.2% QoQ, reaching 20,409 units, according to URA REALIS.

This rebound followed a sharp 24% drop in the previous quarter. “The higher demand could be attributed to more tenants returning to the leasing market after the year-end holidays,” the report noted. As a result, occupancy rates rose to 93.5%.

However, the new rental supply has tightened. Completions in Q1 fell to 1,988 units, 35.5% lower than in Q4 2024. OrangeTee forecasts that only 3,932 additional units will be completed from Q2 to Q4, averaging just 1,311 units per quarter.

Despite this support, the report flagged macroeconomic uncertainties as a potential drag on rental momentum. “The private rental market may take longer than expected to fully recover, given the rising macroeconomic uncertainties surrounding the tariff headwinds and potential global trade wars.”

It also warned that companies could “slow down their expat hiring in light of the uncertain economic outlook,” potentially tempering demand in the months ahead.

Still, the report suggests that declining supply, coupled with expected interest rate cuts, could stabilize the market. “Overall rents may rise between 2 and 4 percent for the whole of 2025,” OrangeTee concluded.

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