Savills Research shared that the leasing volume of private residential properties (excluding executive condominiums) in Singapore rose by 4.8% quarter-on-quarter (QoQ) in Q1/2025. The growth was fully driven by the non-landed segment, which registered a 5.2% QoQ increase. Meanwhile, the landed segment for the whole island saw a 1.8% decline in the quarter under review.

All submarkets posted quarterly growth, with the Rest of Central Region (RCR) leading at 7.1%, followed by the Core Central Region (CCR) at 6.3% and Outside Central Region (OCR) at 2.3%.

In a reversal of year-on-year (YoY) declines from 2022 to 2024, Savills Research noted a YoY increase of 3.7% in Q1/2025 in residential leasing volume, despite a marked slowdown in Singapore’s economic growth and employment gains. The growth was primarily supported by the non-landed segment in both the CCR (7.9%) and RCR (7%). Leasing activity for landed homes across the island also edged up 0.5% YoY. However, leasing volume for non-landed residential units in the OCR declined by 2.1% compared to Q1/2024.

The increase in leasing demand in the CCR and RCR can be attributed to an ample supply of new completions over the past two years, especially smaller-sized units, combined with more reasonable rents, which attracted tenants to these properties.

In Q1, the top five non-landed private residential projects by leasing volume were Normanton Park, One Pearl Bank, D’Leedon, Parc Esta and Marina One Residences (see Table 1). One Pearl Bank made its first appearance on the list this quarter. Completed in August 2024, the development comprises two 39-storey towers with a total of 774 units, ranging from studio apartments to penthouses. Rental contracts in One Pearl Bank were heavily skewed toward smaller units, with studio and one-bedroom units accounting for slightly more than half (55.4%) of total leases, followed by two-bedroom units at 36.2%.

Click here to view table 1: Non-Landed Private Residential Projects With Most Leasing Transactions, Q1/2025

While there was a substantial level of completions in the previous two quarters, new supply in the first quarter this year was moderate. Notable projects contributing to this new supply included Midtown Modern, Pasir Ris 8, Pullman Residences Newton, Liv @ MB and Klimt Cairnhill. By market segment, the CCR accounted for slightly more than half of the new completions (53.1%). (See Table 2)

Click here to view Table 2: Non-Landed Private Residential Projects With Most Leasing Transactions, Q1/2025

The island-wide stock of completed private residential properties continued increasing for the fourth consecutive quarter, rising marginally by 0.5% QoQ in the first quarter. The decline in new completions was the main factor leading to a drop in net take-up of completed properties – from 5,420 in Q4/2024 to 2,498 in Q1/2025. Nevertheless, net demand slightly outpaced net supply during the quarter. This resulted in the island-wide vacancy rate easing slightly by 0.1 of a percentage point (ppt) QoQ to 6.5% – an indication of the market continuing to absorb vacant units from significant completions in recent quarters.

George Tan, Managing Director, Livethere Residential, Savills Singapore said, “With the steady absorption of new supply easing the vacancy rate, the influx of new completions has created a strong value proposition for tenants seeking quality homes in the central region. This has reinforced healthy leasing demand for well-located, efficiently designed units. As central living continues to offer lifestyle appeal, proximity to workplaces, and excellent connectivity to MRT stations, malls, and recreational amenities, we anticipate sustained interest in core and city-fringe properties, supported by resilient tenant demand.”

Alan Cheong, Executive Director, Research & Consultancy, Savills Singapore commented, “In the coming quarters, the market is likely to be impacted by companies being even more diligent in controlling costs. Although the trade tariff negotiations have so far yielded positive results in the case of the UK and China, the road ahead is still fraught with uncertainties and the possibility of setbacks remains high. Beyond the tariffs, the increasing adoption of generative AI to the work process is also creating undercurrents amongst the workforce. How this may pan out is still unclear but given recent announcements by large tech companies that AI is replacing a significant number of coders, the demand for foreign tech workers here is likely to be softer moving forward.”