Rental market stabilises, with higher supply set to cap growth in 2026

SINGAPORE – Singapore’s rental market stabilised in 2025 after private residential rents fell in 2024, while HDB rental growth slowed sharply, with analysts expecting rising housing supply to cap rental growth in 2026.

Data from the Urban Redevelopment Authority (URA) as well as property portals Singapore Real Estate Exchange and 99.co shows leasing activities eased towards end-2025 across both market sectors, reflecting a seasonal slowdown due to tenants and landlords travelling, rather than weakening demand, noted analysts.

In the private residential market, Ms Christine Sun, chief researcher and strategist at Realion (OrangeTee & ETC) Group, said rents broadly stabilised in 2025, with growth easing to about 2.5 per cent to 3 per cent. She expects a rise at a similar pace in 2026.

She noted that the increase is significantly lower than the 29.7 per cent posted in 2022 and 8.7 per cent in 2023.

Private residential rents surged in 2022

and hit their highest level in 2023, surpassing the previous peak in 2013.

In 2024, th

e

y fell by 1.9 per cent

and eased into a stabilisation phase by 2025.

Analysts said that the rental boom in 2022 was driven largely by border reopenings that brought expatriates and foreign workers back to Singapore at a time when supply was tight due to delayed housing completions during the Covid-19 pandemic.

Prices continued to rise into 2023, reaching their highest levels before easing in 2024 as affordability limits were reached, hiring became more cautious and more homes gradually entered the market.

In OrangeTee’s rental market outlook 2026 report, Ms Sun said there are headwinds from higher condo completions and a cautious hiring outlook.

Still, she noted that a stable global economic outlook and continued inflows of foreigners into Singapore in 2026 could help cushion the impact of these headwinds.

The Republic’s economy has remained resilient despite global trade tensions, with non-oil domestic exports up by 4.1 per cent in the first 10 months of 2025, data from Enterprise Singapore showed.

The Ministry of Trade and Industry has projected the nation’s

gross domestic product to grow by 1 per cent to 3 per cent in 2026

.

The number of foreigners in Singapore

grew by 2.7 per cent year on year to 1.91 million in June 2025

. It added 34,000 foreign workers across all pass types, from work permit to employment pass, excluding domestic helpers, between June 2024 and June 2025.

Huttons Asia senior director of data analytics Lee Sze Teck noted that in the luxury non-landed segment, rents in 2025 are estimated to climb by about 2 per cent, after dropping by 4.3 per cent in 2024.

The luxury non-landed segment is made up of condominiums in the core central region that are at least 2,000 sq ft in size and valued at $5 million and above.

In Huttons’ rental market outlook 2026 report, Mr Lee estimated that the number of non-landed private rental contracts in 2025 will edge up by about 0.6 per cent from 2024 to around 82,000, linked to steady tenant demand and lower supply.

Figures from the Singapore Department of Statistics show that in 2024, about 85.3 per cent of households residing in non-landed private properties were owner-occupied.

However, supply is set to rise in 2026.

Based on URA data, Ms Sun said the number of private homes, excluding executive condominiums, obtaining their temporary occupation permit (TOP) is projected to expand from 5,249 in 2025 to 7,006 in 2026 – and further to 8,955 in 2027 and 10,195 in 2028.

As more properties enter the rental pool, “landlords will likely face stiffer competition for tenants”, she added.

She said some tenants, especially young single expatriates, may shift from small private apartments to well-located new flats, given the cost savings and convenience.

HDB rents held steady in 2025.

Data from SRX and 99.co shows HDB rents are expected to go up by around 1.4 per cent in 2025, down from 3.7 per cent in 2024, 10.2 per cent in 2023 and significantly lower than the 28.5 per cent in 2022.

However, on a monthly basis, HDB rents registered modest growth in November after three months of declines, rising 0.5 per cent month on month, supported mainly by smaller flat types such as three-room units, said Mr Luqman Hakim, chief data and analytics officer at 99.co.

“This reflects sustained demand from budget-conscious renters, including singles, young couples and foreign workers, even as overall leasing activity slows. Importantly, HDB rental volumes remain comfortably above year-ago levels, indicating that the public rental market is still absorbing demand displaced from higher-cost private options,” he added.

Looking ahead, analysts said a sharp increase in the number of HDB flats reaching their five-year minimum occupation period (MOP) could reshape the public rental market from 2026.

About 13,500 HDB flats are projected to achieve MOP in 2026, up from about 7,000 in 2025, noted OrangeTee’s report.

The supply is expected to jump to 18,939 in 2027 and 21,393 in 2028, adding to a growing pool of flats that will be eligible for rent.

The impact is likely to be uneven across towns.

Analysts said the larger supply of MOP flats could slow rental growth, particularly in less convenient locations, while units near MRT stations, amenities and commercial hubs are expected to enjoy more resilient demand and pricing.

Mr Luqman said a subset of newly reached MOP flats within walking distance of MRT stations, such as SkyOasis@Dawson, SkyResidence@Dawson and Kallang Residences, could command rental premiums.

“Depending on the number and frequency of rental transactions that will occur in these projects, they could exert an upward influence on rent price in their respective towns in some months,” he noted.

“Otherwise, the proportion of flats reaching MOP in each town remains relatively small and... should not materially shift the overall rental supply and rental prices in their respective towns.”

Ms Sun said the relative affordability of HDB flats compared with private homes should continue to support leasing demand.

However, she cautioned that landlords will face stiffer competition as supply builds, reinforcing expectations that HDB rental growth will remain capped at low single-digit levels in 2026.