Rents Expected to Hold Firm in 2026 as Limited Supply Anchors Singapore Residential Market
Savills’ Q1 2026 Residential Leasing Report highlights a pickup in leasing activity, with transactions climbing 4.0% quarter-on-quarter (QoQ) to 20,862.
Headline activity growth contrasts with on-the-ground conditions, where market feedback indicates relatively subdued leasing.
Separately, tenant behaviour continues to evolve. More tenants are accepting higher renewal rents while opting for shorter leases, reflecting ongoing concerns around economic conditions and job security.
At the prime end, rents have shown more consistent growth. Savills’ basket of high-end non-landed homes rose 1.7% quarter-on-quarter to S$6.15 per sq ft, marking a sixth straight quarter of increases. Since the recent trough in Q3 2024, prime rents have recovered by a cumulative 7.0%.
Leasing activity continued to concentrate in a few large developments. Normanton Park led the pack with 265 lease contracts at a median rent of S$6.19 per sq ft, followed by Marina One Residences with 141 deals at S$6.49 per sq ft.
Supply growth remained limited this quarter. A total of 911 private residential units (excluding ECs) received Temporary Occupation Permit status, with completions largely concentrated in OCR projects such as The Botany at Dairy Farm and Sceneca Residence. As a result, total islandwide stock inched up just 0.2% to 424,165 units.
Vacancy trends were mixed across sub-markets. In the CCR, vacancy tightened, with unoccupied stock falling to 7,458 units and the vacancy rate easing to 8.2%. Meanwhile, both the RCR and OCR saw an uptick in vacant units, pushing vacancy rates slightly higher to 6.3% and 5.2% respectively; suggesting uneven absorption across different segments.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, said: “Looking ahead, we maintain our view that private residential rents are likely to remain broadly flat for the full year 2026. Supply levels remain manageable, with 911 units completed in Q1/2026 and a further 5,371 units expected to be delivered over the remainder of the year. Despite ongoing global economic headwinds, the underlying resilience of the rental market should support relatively stable conditions in the near term.”