Singapore private leasing rises 2.8% in Q2

About 21.3% of units in non-landed developments completed since Q3 2024 had been leased.

Private residential leasing activity in Singapore climbed for the second consecutive quarter in Q2 2025, rising 2.8% QoQ after a 4.9% increase in Q1, according to Savills.

The uptick was driven by the non-landed segment, with the Outside Central Region (OCR) posting the strongest gain at 4.1%, followed by the Core Central Region (CCR) at 3.0% and the Rest of Central Region (RCR) at 2.2%.

Leasing of landed homes fell 2.0% from the previous quarter, extending a decline that began in Q4 2024. Despite stronger leasing volumes overall, the island-wide vacancy rate rose from 6.5% in Q1 to 7.1% in Q2, with vacant stock increasing 10.5% QoQ, Savills said.

More than 60% of the additional vacant units were in the OCR, with RCR and CCR accounting for 24.9% and 14.8%, respectively.

Savills attributed the higher vacancy to slower leasing of new completions since Q3 2024 and some tenant migration toward more central projects.

As of June 2025, about 21.3% of units in non-landed developments completed since Q3 2024 had been leased.

The firm expects overall private residential rents to remain broadly flat this year, supported by rental premiums for newer units and cost considerations for landlords, but sees potential softness in one- and two-bedroom types as new supply enters the market.