The private and Housing Development Board (HDB) rental markets in Singapore have shown a resurgence in demand during the first quarter of 2025, following a period of stability in the previous quarter. According to OrangeTee’s latest report, private rents experienced a marginal increase, with both non-landed and landed properties seeing slight gains.
Private rental prices rose by 0.4% in Q1 2025, as per the Urban Redevelopment Authority’s rental index. Landed property rents reversed a previous decline, growing by 0.3%, whilst non-landed rents increased by 0.5%. This growth was observed across all market segments, with the Core Central Region and Rest of Central Region both climbing by 0.4%, and the Outside Central Region reversing a previous drop with a 0.7% increase.
The report highlights that the private rental market’s recovery may be prolonged due to macroeconomic uncertainties, such as tariff headwinds and potential global trade wars. However, a declining supply of completed homes and lower interest rates could mitigate significant rental price corrections, with overall rents expected to rise between 2% and 4% for the year.
In the HDB sector, rental volumes rebounded for the first time in three quarters, with a 12.3% increase in approved rental applications from Q4 2024 to Q1 2025. HDB rents remained stable, with a slight 0.1% increase. The limited supply of flats reaching their Minimum Occupation Period is expected to maintain upward pressure on rents, projected to grow by 2% to 4% in 2025.
Overall, the rental markets are poised for moderate growth, driven by demand outstripping supply in certain areas and a stable employment outlook attracting foreign students and expats back to Singapore.
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