Condo Rents Rebound but Volumes Slip: Mixed Bag for February Rental Market

Private Home Rents Edge Up 0.3% in February as Rental Volume Drops Nearly 20%

In February 2025, Singapore's non-landed private residential rental market saw a modest rebound, with rents edging up 0.3% month-on-month (MoM), reversing the slight decline recorded in January. However, weighed down by the Chinese New Year holidays, rental transaction volume slowed noticeably, falling 19.7% MoM.

Overall Rents Rise with Mixed Performance Across Regions

Flash data showed: Overall private home rents rose by 0.3% MoM and climbed 1.8% year-on-year (YoY).

Core Central Region (CCR) rents posted the strongest MoM gain, rising 1.6%.

Outside Central Region (OCR) mass-market private home rents edged up 0.2%.

Rest of Central Region (RCR) rents dipped 0.5%.

On a YoY basis, rents across all market segments increased by more than 1% compared to the same period last year, with RCR recording the highest growth at 1.9%.

Transaction Volume Plunges Amid Holiday Lull

In February, private home rental volume stood at 5,062 units, down 19.7% from the 6,306 units leased in January. However, compared to the same period last year, rental volume was still up by 5.7%.

During the Chinese New Year period, many families travelled abroad or deferred lease commitments, leading to the slowdown in leasing activity.

The YoY growth in rental volume was primarily driven by the wave of newly completed private homes. In the second half of last year, approximately 6,300 units obtained their Temporary Occupation Permit (TOP). The influx of new rental supply bolstered both rents and leasing momentum, particularly in the CCR and OCR.

Optimistic Full-Year Outlook: Rents Projected to Grow 2% to 4%

Looking ahead for the whole of 2025, the rental market is expected to sustain a steady recovery, with full-year rental growth projected to range between 2% and 4%.

HDB Rental Market: Rents Climb as Leasing Volume Dips

In the HDB rental market: Overall rents rose 0.7% MoM; rents in mature and non-mature estates rose 0.7% and 0.8% respectively; rental volume fell 10.8% MoM to 2,352 units, marking a 3.9% decline YoY.

A lower number of HDB flats reaching their five-year Minimum Occupation Period (MOP) has tightened the supply of flats available for rent.

At the same time, following the upward revision of salary qualifying thresholds for S Pass and Employment Pass holders, some tenants have been willing to pay higher rents, further underpinning overall rental levels.