Rental market trend news

In the Singapore rental market for 2025, several key trends are anticipated:

Rental Price Increases

Rental prices for both private homes and HDB flats are expected to rise by 2% to 4% due to improved macroeconomic conditions, employment growth, and a shrinking supply of new units. This increase is driven by fewer new private homes being completed, with suburban and city fringe areas likely to see the biggest rent increases.

Supply Constraints

The number of private home completions is set to drop significantly, from 9,103 units in 2024 to about 5,348 units in 2025. In suburban areas, the number of homes receiving their Temporary Occupation Permit (TOP) will decrease by 68.8% compared to the past 10-year average, while city fringe areas will see a 59.1% drop.

HDB Rental Market

HDB rental prices are also projected to rise by 2% to 4% due to a decrease in available flats for lease. However, competition from the private rental market may limit this growth as tenants move from public housing to private homes due to lower rents and more flexible lease terms. The number of HDB flats reaching their Minimum Occupation Period (MOP) is expected to be at a 10-year low of 6,974 units in 2025.

Regional Variations

Rental demand and growth are expected to vary across different regions. The Core Central Region (CCR) is anticipated to see steady rental price increases due to its proximity to business districts and amenities. The Rest of Central Region (RCR) will likely experience moderate growth driven by strong demand from expatriates and professionals, while the Outside Central Region (OCR) may see slower rental growth due to its appeal to budget-conscious families and HDB upgraders.

Tenant Preferences

Tenants are increasingly seeking properties with amenities such as co-working spaces, gyms, and concierge services, which are commonly found in new launch condos. This shift in tenant preferences is influencing the rental market, particularly for long-term rentals.

Overall, the rental market in Singapore is expected to experience moderate growth, driven by a combination of economic factors, supply constraints, and changing tenant preferences.