There are various offsetting forces driving this forecast.
Singapore’s residential leasing market recorded a stronger-than-expected second quarter, but private home rents are still expected to remain broadly flat in 2026 amid mixed demand drivers and an uncertain economic outlook, according to Savills.
Leasing transactions for private residential properties rose 5.1% quarter-on-quarter and 3% year-on-year in Q2 2026. Savills said this increase was notable because market feedback during the quarter was mixed, with most leasing agents describing activity as relatively slow, while a smaller group reported strong demand in the higher-end segment.
The consultancy said the divergence may partly reflect tenants whose one-year leases signed during the post-pandemic recovery period expired in 2026, prompting them to re-enter the market. The availability of newly completed projects may also have encouraged leasing activity.
Savills also pointed to demand from foreign students enrolled in master’s programmes who were unable to secure university accommodation and turned to HDB and private rental homes. However, their budget constraints mean this group is unlikely to generate significant upward pressure on rents.
This was reflected in smaller non-landed homes in the Rest of Central Region (RCR) and Outside Central Region (OCR), where rents for one- and two-bedroom units fell 0.1% and 0.4% quarter-on-quarter respectively, even as leasing transactions increased 5.9% and 3.2%.
Other factors supporting leasing demand included landlords taking back properties, forcing displaced tenants to find alternative homes. Savills also observed increased demand from senior expatriate executives from North Asian countries excluding China, who appeared to favour higher-end homes with monthly rents above S$10,000. Four- and five-bedroom non-landed homes in the Core Central Region saw rents rise 2% quarter-on-quarter in Q2.
Looking beyond quarterly fluctuations, Savills said rental trends will be shaped more by economic and business fundamentals, employment conditions and the volume of new housing supply.
Singapore’s Ministry of Trade and Industry forecasts 2026 GDP growth at 2% to 4%, although Savills said strong first-half performance and persistently elevated semiconductor prices could push full-year growth closer to 5% to 6%.
However, stronger economic growth may not translate into equivalent employment growth or corporate expansion. Savills noted that technological advances and productivity gains are allowing companies to increase output without proportionately increasing headcount. Meanwhile, free cash flow among large multinational corporations remains uneven, with some hyperscalers recording negative free cash flow amid heavy investment, while traditional sectors such as energy, materials and healthcare continue to show stable or growing cash flows.
These trends could temper corporate expansion and expatriate inflows, Savills said. On the domestic front, the removal of the 15-month wait-out period for private property owners looking to downgrade to HDB flats could also reduce short-term rental demand by allowing households to transition more directly between housing types.
Given these offsetting forces, Savills said it is maintaining its forecast that Singapore’s private residential rents will remain broadly flat in 2026.