Singapore Rental Market Q1 2026: Leasing Volumes Rebound as Luxury Rents Rise for Sixth Straight Quarter

Singapore Private Residential Leasing Market Rebounds! Q1 2026 Volume Rises 4% QoQ, but Sentiment Remains Cautious; Rental Transactions Edge Up 4%

According to the latest residential leasing market report released by Savills Singapore, the Singapore private residential rental market showed signs of recovery in the first quarter of 2026.

A total of 20,862 private residential tenancy contracts were recorded islandwide in the first quarter of the year, representing a 4% increase over the previous quarter. On paper, leasing activity has picked up noticeably; however, Savills noted that actual market sentiment remains cautious, with no distinct broad-based strengthening in overall momentum.

Against the backdrop of persistent global economic uncertainties and lingering pressures in the employment landscape, many tenants have begun adjusting their rental strategies.

Tenants Accept Higher Rents but Prefer Shorter Leases

Savills observed that an increasing number of tenants are accepting higher renewal rents, but are simultaneously leaning towards signing shorter lease terms to retain flexibility for future housing adjustments.

This reflects tenants' ongoing concerns regarding job security and the broader economic climate.

Compared to previous boom periods, tenants today are notably more prudent and flexible with their budgets, lease commitments, and relocation plans.

High-End Private Home Rents Rise for Sixth Consecutive Quarter

Meanwhile, rents in the luxury private home segment continued their upward trajectory.

Savills' basket of high-end non-landed private residential projects saw average monthly rents reach S$6.15 per sq ft in Q1 2026, up 1.7% quarter-on-quarter. This marks the sixth consecutive quarter of rental growth for high-end properties.

Measured from the trough in Q3 2024 to date, luxury residential rents have rebounded by approximately 7% cumulatively.

This also indicates that even amidst cautious overall market sentiment, prime core residential developments continue to enjoy resilient demand.

Normanton Park Emerges as Most Active Rental Project

In terms of transaction volume, large-scale residential developments continue to be the primary drivers absorbing tenant demand in the market.

Among them, the 1,862-unit Normanton Park was the most actively leased development this quarter, clocking 265 rental transactions with a median rent of S$6.19 per sq ft.

It was closely followed by the 1,042-unit Marina One Residences, which recorded 141 leasing transactions at a median rent of S$6.49 per sq ft.

Large developments continue to be favored by tenants thanks to their comprehensive facilities, extensive selection of unit layouts, and high liquidity in the rental market.

New Supply Remains Limited

On the other hand, new incoming supply across the market remains relatively constrained.

In Q1 2026, only 911 private residential units (excluding Executive Condominiums, or ECs) received their Temporary Occupation Permit (TOP).

The bulk of these newly completed units came from the Outside Central Region (OCR), including projects such as The Botany at Dairy Farm and Sceneca Residence.

With limited new completions, Singapore's total private residential stock grew by just 0.2% QoQ to 424,165 units.

CCR Vacancy Rates Decline, While RCR and OCR Edge Up

In terms of vacancy rates, divergent trends were observed across different market segments.

In the Core Central Region (CCR), vacancy conditions improved. The number of vacant units fell to 7,458, bringing the overall CCR vacancy rate down to 8.2%.

In contrast, vacancy rates in the Rest of Central Region (RCR) and Outside Central Region (OCR) edged up slightly.

The RCR vacancy rate rose to 6.3%, while the OCR rose to 5.2%. This underscores clear disparities in rental absorption capacity across the different regions.

Bolstered by sustained demand from expatriates, affluent tenants, and prime high-quality projects, the prime core market demonstrated relatively steady performance.

Savills: Rents Projected to Remain Broadly Stable in 2026

Looking ahead, Savills maintains a broadly steady outlook for the market.

Private residential rents across the whole of 2026 are projected to remain largely flat, with neither sharp increases nor significant declines expected.

Approximately 5,371 private residential units are slated for completion over the remainder of the year. However, overall supply levels remain manageable.

Despite ongoing global macroeconomic headwinds, Singapore's rental market possesses intrinsic resilience, and the broader leasing environment is anticipated to stay relatively stable in the period ahead.

Market Enters Phase of "Volume Recovery, Cautious Sentiment"

From prevailing trends, Singapore's private rental market is entering a phase characterised by "volume recovery alongside cautious sentiment".

Tenant demand remains intact, yet decision-making is markedly more rational; while rents have ceased surging aggressively, rental interest in prime locations and quality developments continues to hold firm.

Whether the market experiences a broader rebound moving forward will largely hinge on global economic conditions, the strength of the job market, and the pace of upcoming new housing completions.