The leasing volume of private residential properties in Singapore increased by 4.8% quarter-on-quarter in Q1 2025, driven entirely by the non-landed segment, according to Savills Research. This growth comes despite a slowdown in the country’s economic growth and employment gains. The non-landed segment saw a 5.2% rise, whilst the landed segment experienced a 1.8% decline.
The Rest of Central Region (RCR) led the quarterly growth with a 7.1% increase, followed by the Core Central Region (CCR) at 6.3% and the Outside Central Region (OCR) at 2.3%. Year-on-year, the residential leasing volume rose by 3.7%, reversing declines from 2022 to 2024. This increase was supported by new completions and more reasonable rents, particularly in the CCR and RCR.
Among the top non-landed projects by leasing volume were Normanton Park, One Pearl Bank, D’Leedon, Parc Esta, and Marina One Residences. One Pearl Bank, completed in August 2024, saw a significant number of leases for smaller units, with studio and one-bedroom flats making up 55.4% of total leases.
George Tan of Savills Singapore noted that the influx of new completions has created a strong value proposition for tenants seeking quality homes in central regions. Alan Cheong, also from Savills, highlighted potential challenges ahead, including corporate cost control and the impact of generative AI on the workforce, which may affect future demand for foreign tech workers.
As the market absorbs vacant units from recent completions, the island-wide vacancy rate eased slightly to 6.5%. Looking forward, the leasing demand for well-located properties is expected to remain robust, driven by lifestyle appeal and connectivity.
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