Singapore private residential leasing grows by 3.1% to 20,326 units in Q2

This was driven by the non-landed property sector.

According to a Savills report, following a 5.0% QoQ rise in leasing volume of private residential units (excluding executive condominiums) in Singapore in Q1, that statistic grew by another 1.7% QoQ to 20,326 transactions in Q2/2024. Compared to the same period last year, this was a 3.1% increase. 

The increase in leasing volume was observed in the non-landed property segment which saw a 1.9% QoQ rise while there was a 1.5% QoQ decrease for landed homes. 

Here’s more from Savills:

For non-landed homes, rental transactions expanded in both the CCR and the RCR, increasing by 3.3% QoQ and 3.2% QoQ, respectively. A detailed check of leasing contracts by the number of bedrooms revealed that the growth in these two market segments is mostly driven by greater demand for one- and two-bedroom units. 

According to the REALIS, the leasing volume of one and two-bedroom units in the CCR rose by 14.2% QoQ and 7.0% QoQ, respectively. In the RCR, rental contracts for one- and two-bedroom units expanded by 5.2% QoQ and 7.6% QoQ respectively. The increase in leasing volume for these smaller-sized units can be attributed to growing demand from tenants who were priced out of these market segments over the past few years and had moved to either HDB or co-living premises. 

The game of “music chairs” is unfolding in the rental market as softer rents are motivating tenants to move in search of lower cost apartments. The supply of units from new completions is also providing ample options for tenants. In contrast, leasing volume in the Outside Central Region (OCR) remained stable and contracted marginally by 0.4% QoQ in the quarter.