Singapore’s residential leasing market experienced a significant decline in activity during the fourth quarter of 2025, with a 27.4% drop in islandwide leasing contracts. This downturn was attributed to seasonal factors, such as the year-end festive period, and a slower influx of expatriates and international students, according to Savills’ latest briefing.
Despite the subdued leasing activity, the report indicates that rents for non-landed private residential properties are expected to remain stable. The limited number of new completions, projected at around 6,083 units, and current vacancy rates below 6.5% are likely to support rental prices. Local demand from residents awaiting the completion of their private homes may also help counterbalance the reduced expatriate demand.
Alan Cheong, Executive Director of Research & Consultancy at Savills, noted that the modest year-on-year gains in 2025 provide a baseline for 2026. “Overall, rents for non-landed private residential properties are forecast to remain broadly flat in 2026,” he stated.
The report suggests that whilst the leasing market faces challenges, the steady supply and local demand dynamics could help maintain rental stability in the coming months. As the market adjusts to these conditions, stakeholders will be closely monitoring the impact on rental trends and vacancy rates.
