What is the current rental market trend in Singapore

Shifting Tenant Preferences

Tenants are increasingly seeking properties with modern amenities such as co-working spaces, gyms, and concierge services, which are commonly found in new launch condos. This shift in preferences is influencing the demand for certain types of properties.

Regional Variations

Rental demand and growth vary across different regions:

• The Core Central Region (CCR) is expected to see steady rental price increases due to its proximity to business districts and amenities.
• The Rest of Central Region (RCR) is experiencing moderate growth, driven by strong demand from expatriates and professionals.
• The Outside Central Region (OCR) is seeing slower rental growth, as it appeals more to budget-conscious families and HDB upgraders.

Long-Term Rental Demand

With the improvement in global mobility and the resumption of expatriate hiring, there is a growing demand for long-term rentals. This trend is particularly noticeable in areas with strong expatriate and professional communities.

Constrained Inventory

The rental market is also characterized by constrained inventory, which is driving demand and creating opportunities for landlords and investors. Despite a recent dip in condo rents, the overall outlook suggests near-zero rental growth for 2025, following a 1.7% quarterly increase in the fourth quarter of 2024 for high-end condos.

Regulatory and Market Factors

Government policies, such as increased Additional Buyer’s Stamp Duty (ABSD) rates for non-residents, have curtailed foreign demand, allowing local buyers to dominate the market. These regulatory factors help stabilize the housing market and promote sustainable growth.