Singapore’s private rental market appears poised for a period of stability in 2025, with most analysts projecting flat growth in rental rates. After a modest rebound in the first quarter — where the private residential rental index ticked up by only 0.4% — momentum is expected to moderate for the rest of the year.
A key reason for this tempered outlook is the significant drop in new private home completions. According to ERA’s research, only about 1,988 non-landed private homes attained Temporary Occupation Permits in Q1 2025, compared to a much higher number in the previous year. This decline in fresh supply helps cushion rents from falling further but isn’t strong enough to spark aggressive rent hikes. OrangeTee research also backs this up: their Q1 2025 report shows that condo rents rose only in the low single digits across all market segments.
On the demand side, rental contracts for private homes actually rose a little — ERA reports a 3.0% quarter-on-quarter increase in contracts in Q1 2025. However, this uptick doesn’t necessarily translate into surging rents. As Savills points out, while there is some seasonal demand tied to expat moves and school calendars, the overall hiring pace of expatriate workers is uncertain, which could limit long-term rental demand.
Economic headwinds add another layer of complexity. According to research from The Business Times, global trade tensions and cautious corporate hiring are weighing on demand — particularly for larger or more premium units. This creates a balancing act: fewer completions help support rents, but soft demand and economic risk limit landlords’ ability to push for higher rates.
Overall, the consensus among property analysts is for near-zero rental growth in 2025 — a reflection of a market finding its equilibrium. For tenants, that could be welcome news: after years of rapid rent increases, a more stable leasing environment could mean less pressure on budgets. For landlords, the challenge will be to maintain occupancy without relying on aggressive rent hikes.
