Private residential leasing volume up 3.1% YoY in Q2

The non-landed property segment saw a 1.9% quarterly increase.

The private residential leasing volume in Singapore has risen by 3.1% year-over-year, as per Savills Research.

The growth was primarily seen in the non-landed property segment, which experienced a 1.9% rise quarter-on-quarter (QoQ). Notably, rental transactions expanded in the Core Central Region (CCR) and the Rest of Central Region (RCR), with increases of 3.3% and 3.2% QoQ, respectively.

This growth in leasing activity is largely attributed to heightened demand for one- and two-bedroom units. Many tenants who had previously been priced out of these segments have shifted from HDB or co-living arrangements to private residences. Specifically, leasing volume for one- and two-bedroom units in the CCR grew by 14.2% and 7.0% QoQ, respectively, while in the RCR, these units saw expansions of 5.2% and 7.6% QoQ.

The top three non-landed properties with the highest leasing volumes this quarter were Treasure At Tampines, Normanton Park, and Leedon Green.

In terms of new supply, 1,882 private residential units were completed from April to June 2024. Of these, three 99-year leasehold condominium projects on government land sale sites, namely Clavon at Clementi Avenue 1, Midtown Bay on Beach Road, and One-North Eden at Slim Barracks Rise accounted for 54.4% of the new completions. The CCR saw the largest share of new stock this quarter, making up 50.1% of the total.

Island-wide, the stock of private residential units increased by 0.4% QoQ in Q2, reversing the previous quarter's contraction.

The overall vacancy rate for private homes fell by 0.7 percentage points QoQ to 6.1%. The largest decline in vacancy rates was observed in the Outside Central Region (OCR), down by 1.1%, followed by the RCR with a 0.8% drop. Conversely, the CCR saw a 0.4% QoQ increase in vacancy rates, attributed to the high number of new completions during the quarter.

“With the drop in vacancy rate and completed new stock coming in the market, we can see a marginal optimistic movement in the market. Rents continue to stabilise,” said George Tan, Managing Director, Livethere Residential, Savills Singapore. For owners of the smaller units, we can see that there is demand for it and they will likely be able to command a reasonable rent on a per square foot basis.”