Residential leasing up 4% in Q1 as demand softens

Momentum slowed as underlying leasing appetite decreased.

Residential leasing transactions in Singapore rose 4% quarter on quarter (QoQ) to 20,862 in the first quarter (Q1) of 2026, according to Savills’ Q1 Residential Leasing Report.

The increase in transaction volume contrasts with market feedback indicating subdued leasing conditions on the ground.

Tenants accepted higher renewal rents and chose shorter lease terms, reflecting concerns about economic conditions and job security.

Prime residential rents recorded gains. Savills’ basket of high-end non-landed homes rose 1.7% QoQ to $6.15 per square foot (sq ft), marking six consecutive quarters of increases.

From the third-quarter 2024 trough, prime rents rose 7.0%.

Leasing activity was concentrated in large developments, as Normanton Park recorded 265 lease contracts at a median rent of $6.19 per sq ft, whilst Marina One Residences recorded 141 deals at $6.49 per sq ft.

Private residential supply increased through completions, with a total of 911 units receiving Temporary Occupation Permit status in Q1 2026.

Completions were concentrated in Outside Central Region (OCR) projects, including The Botany at Dairy Farm and Sceneca Residence, which resulted in total islandwide stock inching up 0.2% to 424,165 units.

Vacancy trends diverged across regions, as Core Central Region vacancy fell to 7,458 units, with a vacancy rate of 8.2%.

The Rest of Central Region and OCR recorded higher vacant stock, with vacancy rates at 6.3% and 5.2%, respectively.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, said private residential rents are likely to remain flat in 2026.

He cited supply of 911 units in Q1 2026, and 5,371 units scheduled for completion over the remainder of the year, adding that market conditions reflect resilience supported by manageable supply levels.