Singapore Rental Market 2025: Why Landlords Should Stay Confident
- Megan Soo
- Aug 26
- 3 min read
The private residential rental market in Singapore is showing signs of stabilisation after the correction in 2024. Recent data from Q2 2025 highlights that while the recovery is uneven across different regions and unit types, the overall trend points towards renewed resilience — good news for landlords and investors.
Leasing Activity on the Rise
Leasing volume is picking up strongly. In Q2 2025, more than 21,000 units were rented, a 2.8% increase quarter-on-quarter and higher than both last year’s levels and the five-year average.
In July alone, leasing surged by 30% compared to June, with almost 8,700 units rented. This rebound signals that tenant demand is coming back, especially as companies expand headcount and expats return.
Where Rents Are Growing
The rental index of private homes rose 0.8% in Q2, continuing the steady climb from Q1. However, the gains are not evenly spread:
Core Central Region (CCR) condos saw stronger rental growth (+1.8%), supported by high demand for prime properties.
Landed homes also saw rents inch up, despite fewer transactions.
Outside Central Region (OCR) rents reached record highs, driven by suburban demand.
At the same time, smaller units — such as studios and one-bedders — are facing more pressure, as new supply hits the market. Larger apartments, however, remain in demand among families and expats.
What’s Driving This Recovery?
Several factors are boosting landlord confidence:
Limited New Supply – After nearly 20,000 completions in 2023, only about 8,460 new units were delivered in 2024, and just 4,949 are expected in 2025. This tapering supply supports rent stability into 2026.
Lower Interest Rates – With rates coming down, landlords now enjoy stronger holding power, making it easier to ride through market cycles.
Expats Returning – Families and professionals are seeking larger units, especially in city-fringe and central areas.
Global Uncertainty – Singapore continues to attract high-net-worth individuals as a “safe haven,” adding strength to luxury rental demand.
Outlook for Landlords
Looking ahead, experts believe rents will remain steady through the rest of 2025, with selected segments — like larger CCR condos and suburban family units — seeing the most resilience. Smaller units may face price resistance, but landlords with well-located properties should continue to benefit.
The tapering supply pipeline also means landlords are unlikely to face a major oversupply problem. With inflation pushing up costs of property maintenance, service fees, and taxes, landlords may also have room to adjust rents upwards where demand is robust.
Key Takeaways for Landlords & Investors
Rental market is stabilising after 2024’s dip, with leasing activity bouncing back.
Prime and larger units remain in demand, while small units face more competition.
Limited new supply will support rents through 2026.
Lower interest rates strengthen holding power, making now a good time to enter or expand your portfolio.
Singapore’s position as a safe haven continues to drive luxury and expat rental demand.
Final Thoughts
For landlords already in the market, this is a period to stay confident and possibly reposition your property for higher yields. For investors, the window to enter is promising: lower interest rates, a supportive rental environment, and a stable supply outlook provide a strong foundation for long-term returns.
The rental market may be stabilising, but the opportunity for savvy landlords is only just beginning.
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