Overall average median rents in all market segments expected to stay sideways in 2025
Savills Research shared that the top three highest average** median rents for 3-bedroom*** units were in Districts 1 (Boat Quay/Marina/Raffles Place), 4 (Harbourfront/Telok Blangah) and 2 (Chinatown/Tanjong Pagar). The top two have retained their positions, whilst District 2 (Chinatown/Tanjong Pagar) has jumped one place to third position.
Rents in these districts, except for District 4 (Harbourfront/Telok Blangah), increased from the last quarter. In Q1/2025, rents in Districts 1 (Boat Quay/Marina/Raffles Place) and 2 (Chinatown/Tanjong Pagar) increased by 8.5% to S$9,225 and 14.3% to S$8,000 respectively. Rents in District 4 (Harbourfront/Telok Blangah) dropped marginally by 0.6% to S$8,200 per month.
In Q1/2025, rents for 1-to-5-bedroom units increased across all market segments. They rose 1.3% in the Core Central Region (CCR), 1.4% for the Rest of Central Region (RCR) and 1.5% in the Outside Central Region (OCR).
The increase was higher for 1-to-3-bedroom units (the more popular rental types) across these three markets this quarter. Rents in the CCR increased 2.2%, and for the RCR and OCR submarkets, they went up by 0.1% and 0.2% respectively. Quarter-on-quarter (QoQ), the average increase for 1-to-3 bedrooms was 0.7% in Q1/2025, against 0.6% in Q4/2024.
Compared to the last quarter, the rental market for non-landed private residential properties is showing more convincing signs of stabilising. On a year-on-year (YoY) basis however, rents are still down 1.3% and 6.9% for the 1- and 5-bedroom types respectively. For 1-to-3-bedroom units, they ranged between -1.1% to +1.2% YoY.
George Tan, Managing Director, Livethere Residential, Savills Singapore says, “Leasing activities remained resilient with tenant interest continuing at a consistent pace, which reflects demand but increasingly becoming selective. The private residential leasing market is characterised by a delicate balance between price-focused cautious demand and tighter supply from fewer new completions while landlords resist downward pressure due to higher operating costs. Although rents have eased from the peak, the market shows signs of stabilisation, with prices expected to hold steady for the rest of the year.”
Alan Cheong, Executive Director, Research & Consultancy, Savills Singapore comments, “The current economic uncertainty means that corporate inaction would reign supreme, and this is expected to lead to a deferment on decisions for expansion plans in the region. This, in turn, will likely lead to a slowdown in the hiring of Employment Pass personnel.
With higher property taxes and inflationary pressures driving up conservancy charges, landlords have another reason not to give in to low ball rental offers. However, any sharp rental increase is unlikely this year. At a more granular level, we may see a more fragmented rental trajectory for the rest of the year with some districts, especially those 1-to-3-bedroom types in the CCR and RCR gaining ground whilst higher rental quantum unit types lagging in performance.
Overall, for 2025, rents are expected to stay sideways.”