Private residential leasing activity in Singapore has seen a rise for the second consecutive quarter, according to Savills Singapore. In Q2 2025, leasing volume increased by 2.8% quarter-on-quarter, following a 4.9% rise in Q1. This growth was primarily driven by the non-landed segment, with the Outside of Central Region (OCR) leading the charge with a 4.1% increase. The Core Central Region (CCR) and Rest of Central Region (RCR) also saw increases of 3.0% and 2.2%, respectively.
Despite the uptick in leasing activity, the vacancy rate rose from 6.5% in Q1 to 7.1% in Q2, with a 10.5% increase in vacant stock. The OCR accounted for over 60% of this increase, attributed to new completions since Q3 2024 being slow to lease. Irwell Hill Residences emerged as a new leader in leasing activity, with 169 contracts commencing in Q2 2025.
In the high-end market, Savills reported a 0.7% increase in average monthly rents for high-end condominiums, reaching S$5.99 per square foot. Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, noted, “Notwithstanding business uncertainties, rents are holding up because newly completed and let-out flats carry a premium over the rest.”
Savills anticipates that overall private residential rents will remain stable throughout 2025, supported by the rental premium of newer units. However, smaller units may face downward pressure as additional supply enters the market.
“`
