Singapore residential rents expected to stay flat in 2026 despite mixed signals

Stable supply and subdued churn expected to keep rents largely unchanged this year.

Singapore’s private residential leasing market showed a divergence between headline data and on-the-ground sentiment in Q1/2026, with Savills reporting a modest rise in transactions but softer perceptions among market participants.

According to Savills, leasing transactions increased 4.0% quarter-on-quarter. However, feedback from agents across the industry suggested that leasing activity felt comparatively slow, pointing to a disconnect between recorded volumes and market sentiment.

Savills attributed this gap to a shift in leasing behaviour, with a larger share of tenants opting to renew existing leases rather than relocate. While renewals still generate commissions, the reduction in new lease signings has lowered overall market churn, contributing to a perception of subdued activity despite higher transaction counts.

The firm noted that this renewal-driven dynamic also supported modest rent increases, as tenants appeared more willing to accept small adjustments to avoid relocation costs and disruption.

For standard unit types, including one- to three-bedroom apartments, rents rose 0.2% quarter-on-quarter. Performance varied across regions, with the Outside Central Region (OCR) recording a 0.8% increase, while the Core Central Region (CCR) and Rest of Central Region (RCR) saw slight declines of 0.1% and 0.3% respectively.

By unit size, larger five-bedroom units led growth with a 3.4% increase, followed by one-bedroom units at 0.6%. Three-bedroom units recorded a marginal decline of 0.7%, with Savills noting no signs of major market dislocation.

Looking ahead, Savills maintained a broadly stable outlook for Singapore private residential rents in 2026. With 911 units completed in Q1 and a further 5,371 units expected for the rest of the year, supply conditions are seen as manageable. Despite external economic uncertainties, the firm expects underlying market resilience to support largely flat rental performance through the year.