Residential leasing transactions in Singapore increased by 4% in the first quarter of 2026, reaching 20,862, according to Savills’ latest report. Despite this growth, market feedback suggests leasing activity remains relatively subdued. Tenants are increasingly accepting higher renewal rents and opting for shorter leases due to economic uncertainties and job security concerns.
In the high-end segment, rents have consistently grown, with Savills’ index for non-landed homes rising 1.7% quarter-on-quarter to S$6.15 per square foot. This marks the sixth consecutive quarter of increases, with prime rents recovering by 7% since Q3 2024. Notably, Normanton Park and Marina One Residences led leasing activity with median rents of S$6.19 and S$6.49 per square foot, respectively.
Supply growth was limited, with 911 private residential units receiving Temporary Occupation Permit status, primarily in Outside Central Region (OCR) projects like The Botany at Dairy Farm and Sceneca Residence. Consequently, total islandwide stock increased marginally by 0.2% to 424,165 units.
Vacancy rates varied across sub-markets. The Core Central Region (CCR) saw a tightening, with vacancy rates easing to 8.2%, whilst the Rest of Central Region (RCR) and OCR experienced slight increases to 6.3% and 5.2%, respectively. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted that despite global economic challenges, the rental market’s resilience should maintain stable conditions throughout 2026, with an additional 5,371 units expected to be completed by year-end.
