Huttons Asia has projected a stable outlook for Singapore’s private rental market in 2025, with non-landed rental contracts expected to rise by 0.6% to 82,000. This follows a year of geopolitical tensions where Singapore’s stability has been a key factor in maintaining rental demand. The number of landed rental contracts is anticipated to remain steady at 4,900, similar to 2024’s figures.
The luxury non-landed segment is predicted to see a 2% increase in rents, reversing a 4.3% decline in 2024. This growth is partly attributed to a net inflow of 1,600 millionaires, as reported by Henley & Partners. Additionally, Singapore’s appeal as an educational hub is growing, with foreign student numbers rising by 2,500 to 95,500 as of June 2025.
Despite a 29.1% decrease in the supply of private residential homes, steady demand is expected to support a rental increase of up to 3% in 2025. However, the market is expected to be cautious in 2026, with potential economic uncertainties due to geopolitical tensions and increased supply of private homes, which could lead to a 1% to 4% rise in rents.
In the HDB rental market, demand is forecast to rise by 2.3% to 37,500 transactions in 2025, driven by international students and HDB upgraders. However, job losses among S Pass holders and an increase in flats fulfilling the minimum occupation period in 2026 may exert pressure on rents. Huttons anticipates HDB rental transactions and rents to remain flat in 2026.
