The leasing market is buzzing again—think of a hawker centre after lunch, queues stretching out, people scrambling for a seat. Private residential leasing contracts jumped 4 % QoQ to 20,861 in Q1 2026, a rare uptick since Q4 2023. While home‑sales have slowed, renters are lining up for non‑landed flats in the outside‑central region (OCR) and regional centre region (RCR) like commuters crowding the Circle Line at peak hour. The median number of contracts per month rose from 5,215 in Q4 2025 to 5,215 in Q1 2026, confirming the surge. Vacancy rates fell 0.9 percentage points island‑wide to 6 % in Q4 2025, the lowest since Q1 2023. Rent prices nudged higher too. The overall median rent rose from S$5.05 psf to S$5.13 psf (+0.3 % QoQ). Non‑landed units led the recovery with a +0.4 % jump, while landed homes barely in (+0.1 %) after a 3 % dip last quarter. The rental index flipped a 0.5 % decline in Q4 2025 into a 0.3 % gain. Savills says rents should stay firm in H1 2026 because supply is steady and vacancies are modest.
Leasing contracts surge 4% QoQ, echoing hawker‑centre crowds in OCR and RCR.
Regional differences are crystal clear. OCR rents climbed 0.4 % QoQ, echoing the suburban demand that pushes COE prices up. RCR saw the same 0.4 % rise, driven by city‑fringe activity, while CCR’s gain was a modest 0.1 %. Vacancy tightened island‑wide to 6.0 %, the lowest level since Q1 2023. Specifically, OCR vacancy fell to 4.9 %, RCR to 6 %, and CCR lingered at 8.8 %.
Supply still outpaces demand, but not dramatically. Q1 2026 completed 1,271 private residential units, including ECs. Planning approvals sit at 42,561 with 17,032 unsold units. A pipeline of about 30,300 units could launch by 2027, and 27,300 units are slated for completion through 2028. This steady flow should temper price growth even as renters stay keen.
Developer activity tells another story. Sales (excluding ECs) dropped 32 % QoQ to 2,013 units, and new launches fell 30 % QoQ to 1,844 units—lowest quarterly sales since Q1 2025. Developers are now eyeing OCR and CCR projects to capture suburban demand.
Risks linger. URA flags an uncertain macro outlook; SORA rates above 2.9 % keep mortgage costs high; ABSD tightening could cool price momentum; global trade hiccups threaten Singapore’s GDP. Savills projects 4‑6 % annual price growth if Q2 trends hold, with rents staying broadly firm and vacancy tightening supporting stability. The completion pipeline of ~6,000 units in 2026 matches 2025 levels, but regional divergence will keep investors and buyers on their toes.
Key takeaways
- Leasing contracts +4 % QoQ – strongest sign of demand.
- Median rent +0.3 % QoQ – non‑landed leading the charge.
- Vacancy down to 6 % – tightest market in three years.
- Developer sales down 32 % – buyer caution persists.
- Risks: high SORA, ABSD, global trade – stay prudent.
The revised URA figures show a 0.9 % QoQ price increase for private homes in Q1 2026.
