Singapore private residential rents stabilise in 2024 after sharp growth

The average monthly rent for luxury condominiums in Savills’ basket increased by 1.7% QoQ in Q4/2024.

Rental levels in Singapore's private residential leasing segment stabilised in 2024, signaling a return to market norms after experiencing sharp growth from 2021 to 2023.

According to Savills Research, the average monthly rent for luxury condominiums in Savills’ basket increased by 1.7% QoQ in Q4 2024.

Despite the increase in rental prices, overall leasing volume experienced a significant decline. Leasing volume for private residential properties, excluding executive condominiums, dropped by 24.2% QoQ to 19,733 transactions in Q4 2024.

The decrease in leasing activity was mainly due to seasonal year-end factors and a reduction in net new demand from foreign employees. The decline was especially pronounced in the landed housing segment, where rental contracts decreased by 30.8% QoQ.

Similarly, leasing volume for non-landed apartments and condominiums fell by 23.7% QoQ across all market segments, with declines ranging from 23% to 25%. However, on a YoY basis, overall leasing numbers still rose by 3.7%.

Vacancy rates showed improvement in the fourth quarter, with vacant stock decreasing by 7.9% QoQ.

The vacancy rate dropped by 0.6 percentage points QoQ to 6.6%, leading to faster absorption of vacant units across the high-end, mid-tier, and mass-market segments.