Singapore’s residential leasing market maintained strong demand in the second quarter of 2026, with 22,290 rental contracts for private residential properties commencing, marking a 5.1% increase from the previous quarter, according to Savills. Despite this growth, rental prices remained relatively stable due to budget constraints faced by tenants.
The Urban Redevelopment Authority’s (URA) rental index for non-landed private residential properties saw a modest increase of 0.4% quarter-on-quarter. Meanwhile, Savills reported a 1.4% rise in average monthly rents for high-end non-landed residential properties. However, the overall vacancy rate for completed private residential properties rose to 6.4% during the same period, indicating a potential oversupply in the market.
Singapore’s economic growth is projected to surpass the official forecast of 2% to 4% for 2026. Nevertheless, the impact on the residential leasing market may be limited. Mixed free cash flow trends among multinational corporations could restrict expatriate deployments, whilst the removal of the 15-month wait-out period for private homeowners transitioning to Housing Development Board (HDB) flats may reduce domestic leasing demand.
Savills maintains its outlook that private residential rents will remain broadly flat throughout 2026, despite the economic growth and increased rental transactions. The market dynamics suggest that whilst demand is robust, financial constraints and policy changes are influencing rental price stability.
