Private residential rental levels in Singapore have stabilised in 2024, marking a return to market norms after significant growth from 2021 to 2023, according to Savills Research.
The average monthly rent for luxury condominiums increased by 1.7% quarter-on-quarter (QoQ) in Q4 2024, despite a 24.2% drop in leasing volume to 19,733 transactions.
The decline in leasing volume was primarily driven by a 30.8% QoQ decrease in rental contracts for landed houses. Non-landed flats and condominiums also saw a 23.7% QoQ decrease across all market segments, including the Core Central Region, Rest of Central Region, and Outside Central Region. However, on a year-on-year basis, leasing numbers rose by 3.7%.
Despite the drop in leasing activity, landlords have resisted lowering rents due to higher property taxes and conservancy charges, coupled with limited availability of large luxury flats. George Tan, Managing Director of Livethere Residential at Savills Singapore, noted that expatriates and professionals who are flexible in their housing choices could find deals that fit their budget and lifestyle, especially in suburban areas.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, highlighted potential challenges in 2025, citing the adoption of artificial intelligence in the workplace as a factor that could reduce demand for rental housing from expatriates. However, fewer new private home completions and higher property taxes may help maintain rental levels.
The stock of completed private residential properties rose by 0.7% QoQ in Q4 2024, whilst the vacancy rate decreased by 0.6 percentage points to 6.6%, indicating a modest recovery in the market.
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