Singapore private residential rents diverge across regions as vacancy tightens

The vacancy rate declined to a record 6.0%, lowest since Q1 2023.

Singapore’s private residential leasing market showed diverging rental trends across regions in the final quarter of 2025, even as vacancy rates tightened to their lowest level in nearly two years, according to a report from Savills.

Citing data from the Urban Redevelopment Authority, Savills reported that rents in the Core Central Region (CCR) and Rest of Central Region (RCR) rose modestly by 0.7% and 0.6% quarter-on-quarter respectively, while the Outside Central Region (OCR) recorded a sharper 2.0% decline. Overall, the non-landed private residential rental index edged down 0.1% quarter-on-quarter, marking its first decline since Q2 2024.

Savills noted that the variation in rental performance reflects differing demand dynamics, with prime and city-fringe locations showing greater resilience compared to more price-sensitive suburban markets.

Leasing activity softened during the quarter, with Savills highlighting a 27.4% quarter-on-quarter drop in rental transactions to 19,771, based on URA REALIS data. The decline was attributed largely to seasonal factors, including slower inflows of expatriates and international students at year-end. On an annual basis, leasing volumes were broadly flat, slipping just 0.1% and ending six consecutive quarters of growth.

Despite weaker leasing volumes, market fundamentals improved. Savills reported that total vacant stock fell 11.5% quarter-on-quarter to 25,570 units, driving a strong net absorption of 5,027 units—nearly double the previous quarter. This pushed the islandwide vacancy rate down to 6.0%, the lowest level since Q1 2023.

New supply remained steady, with 2,018 units completed during the quarter, bringing total private housing stock to 423,352 units. Savills noted that more than half of these completions were located in the RCR, with additional supply spread across CCR and OCR submarkets.

Looking ahead, Savills expects around 6,083 private residential units to be completed in 2026, broadly in line with 2025 levels. According to Alan Cheong, Executive Director, Research & Consultancy, SAVILLS Singapore, vacancy rates and stable supply are likely to support rental stability in the near term, with rents expected to hold broadly firm in the first half of 2026 despite pockets of softness in certain districts and unit types.