How decisively has Singapore’s rental market shifted from the doldrums of 2024 to a path of recovery in the first half of 2025? Private residential rents increased 0.8% quarter-on-quarter in Q2 2025, doubling the 0.4% growth recorded in Q1 2025, while the first half of 2025 delivered 1.2% year-to-date rental growth that notably reversed the -2.7% decline experienced during the same period in 2024.
Singapore’s rental market has decisively rebounded from 2024’s decline with accelerating growth through the first half of 2025.
The rental recovery demonstrated pronounced segmentation across geographic regions, with high-end Core Central Region properties leading growth at 1.8% quarter-on-quarter. Meanwhile, mass market Outside Central Region rents rose a modest 0.1%, and Rest of Central Region rents remained flat. Despite this upward momentum, islandwide vacancy rates rose by 0.6 percentage points to 7.1% in Q2 2025, indicating that supply constraints rather than occupancy improvements drove rental increases.
New housing completions remained low throughout the period, constraining available supply and contributing to upward rental pressure across the broader non-landed residential market. Market analysts project full-year 2025 rent increases of 3.0%-5.0% year-on-year, contrasting sharply with the 1.9% decline recorded in 2024. The resale market demonstrated significant activity, accounting for 71.1% of total sales volume as buyers sought existing properties amid limited new supply. Foreign buyers face a 60% Additional Buyers Stamp Duty which may influence rental market dynamics as investment strategies adjust.
Leasing demand benefited from increased international student arrivals, which considerably supported market activity amid other demand-side headwinds. Meanwhile, expatriate demand softened due to economic uncertainties.
Steady demand from foreign professionals in key sectors sustained high rents, particularly in premium areas, as corporate leasing demand remained stable compared to early 2024 levels.
The industrial segment maintained robust performance, with industrial rents achieving 0.7% quarter-on-quarter growth in Q2 2025, marking the nineteenth consecutive quarterly increase. Industrial transaction volumes increased by 7.1% qoq to 435, exceeding 2019’s quarterly average of 310.
Business parks posted the strongest gains at 1.2% quarter-on-quarter, propelled by new and well-located properties. Multiple-user factories grew 0.9%, while both warehouses and single-user factories rose 0.4%.
Macroeconomic uncertainty moderated segments of expatriate and business demand, while interest rate environment and financing conditions impacted investor and tenant decisions. The manufacturing sector recovery and positive Purchasing Managers’ Index readings provided additional support for industrial property performance.
