Singapore’s private residential rental market may experience moderated growth in 2027, according to Savills Singapore.
The real estate consultancy firm highlighted that increased housing completions are expected to keep vacancy rates elevated, potentially slowing rental growth.
In Q3 2026, the vacancy rate for private residential properties rose to 7.2%, up from 6.4% in the previous quarter, following a surge in new completions.
The Urban Redevelopment Authority (URA) reported divergent rental trends across market segments in Q3.
The Outside Central Region (OCR) led with a 3.1% quarter-on-quarter (QoQ) increase in the rental index for non-landed properties, whilst the Rest of Central Region (RCR) saw a 1.5% rise.
Conversely, the Core Central Region (CCR) experienced a 0.3% decline, its first quarterly contraction after three quarters of growth.
Smaller units in the CCR were particularly affected, with median rents for one-bedroom units dropping by 0.7% QoQ and two-bedroom units by 1.9% QoQ.
Despite this, leasing activity remained robust, with rental contracts for private residential properties rising 25.6% QoQ to 28,423 in Q3, a record high for third-quarter leasing volume.
Looking forward, approximately 8,868 private residential units are scheduled for completion in 2027, a 13.9% increase from 2026. This could maintain the vacancy rate above 7% for much of the year.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted that whilst increased vacancies might slow rental growth, tenants’ preference for lease renewals and landlords’ rising ownership costs could keep rents broadly flat through 2027.
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