Is Singapore’s residential leasing market finally stabilising?

Private home rents fell for the third straight quarter in Q2.

Islandwide private home rents fell for the third consecutive quarter in 2Q24 according to JLL, slipping by 0.8% q-o-q amid an expanding leasing stock and tenants’ lower threshold for high rents. 

“However, the decline was slower than the 1.9% and 2.1% q-o-q declines recorded in 1Q24 and 4Q23, respectively. The moderation in the rate of decline suggests that rents could be stabilising,” said Ms Chia Siew Chuin, JLL Head of Residential Research, Research & Consultancy, Singapore.

Here’s more from JLL:

Rents fell across the board for both landed and non-landed homes in 2Q24, though at varying degrees.

Rents of landed residential homes slipped 0.9% q-o-q in 2Q24, following the 4.2% q-o-q fall in 1Q24 and 4.1% q-o-q decline in 4Q23. The limited available stock of landed homes for lease coupled with sustained demand cushioned a steeper decline in rents in the quarter.

For non-landed homes, rents fell 0.8% q-o-q in 2Q24, moderated from the 1.6% decrease in 1Q24. Among the market segments, rents in the CCR held firm, easing just 0.1% q-o-q, markedly slower than the 1.6% q-o-q decline in 1Q24. Non-landed homes in the RCR and OCR also recorded slower declines in rents by 1.4% and 1.3% q-o-q, respectively, compared to the previous quarter. 

Notably, rents for non-landed homes in the CCR were the first to correct in 3Q23 when the leasing market started shifting in favour of tenants. The stagnated rental performance for CCR homes could suggest that the CCR leasing market is starting to stabilise.