Rental demand climbs with smaller units in focus

The growth was led entirely by the non-landed segment, which saw a 5.2% QoQ increase.

Leasing activity in Singapore’s private residential market rose in the first quarter, with overall leasing volume increasing 4.8% QoQ, according to a report released by real estate consultancy Savills Singapore.

The growth was led entirely by the non-landed segment, which saw a 5.2% QoQ increase, whilst the landed segment declined by 1.8%.

All three regional segments posted gains, with the Rest of Central Region (RCR) seeing the highest growth at 7.1%, followed by the Core Central Region (CCR) at 6.3% and the Outside Central Region (OCR) at 2.3%.

Savills noted a reversal of the YoY declines seen from 2022 to 2024. In Q1, leasing volume rose 3.7% YoY, supported primarily by increased activity in the non-landed sectors of the CCR (up 7.9%) and RCR (up 7%).

However, the OCR saw a 2.1% decline in non-landed leasing volume over the same period. Leasing volume for landed homes across the island increased slightly by 0.5% YoY.

According to Savills, the uptick in leasing demand in the central regions can be attributed to an influx of new, smaller unit completions and more competitive rents, which attracted tenants seeking better value.

Amongst non-landed developments, Normanton Park recorded the highest leasing volume for the quarter, followed by One Pearl Bank, D’Leedon, Parc Esta, and Marina One Residences. Notably, One Pearl Bank, which was completed in August 2024, entered the top five for the first time.

Smaller units were in high demand, with studios and one-bedroom apartments comprising over 55% of leases at the development.

Despite substantial completions in previous quarters, new supply in Q1 was moderate. Key projects completed during the period included Midtown Modern, Pasir Ris 8, Pullman Residences Newton, Liv @ MB, and Klimt Cairnhill.

The CCR accounted for the largest share of these completions, at just over 53%.

The total stock of completed private residential properties rose by 0.5% QoQ, marking the fourth straight quarter of increase. Net take-up, however, declined to 2,498 units in Q1 2025 from 5,420 units in Q4 2024.

Nevertheless, with demand outpacing supply, the island-wide vacancy rate edged down by 0.1 percentage point to 6.5%.