Why Singapore Rental Prices Rose Despite More Homes Coming

Seasonal factors and a relatively smaller number of residential properties entering the rental market helped to support rents in the HDB and private residential market in 2Q2026. The HDB rental market and private residential rental market both posted modest growth for the quarter with rents generally holding steady, according to market data by Realion (OrangeTee & ETC) Group.

The agency’s expectations for the whole of 2026 sees both private and HDB rental markets posting modest full year growth. The HDB rental price index is forecasted to maintain its yearly growth forecast of 1% to 3%, while the private rental price index is expected to hold steady at a yearly growth rate of 2% to 3%.

In the quarter that just concluded, there were 22,290 rental transactions in the private residential market, and the overall rental index edged up by 0.7% q-o-q. This is largely attributed to a tighter supply of completed homes in the market during that period. The modest quarterly increase in private housing rents last quarter is slightly ahead of the 0.3% q-o-q growth that was recorded in 1Q2026.

The faster rental growth could be attributed to the tighter supply of completed homes in the market. With fewer new homes completed last quarter, existing rental properties faced some upward pressure that supported the modest rental growth.

In 2Q2026, 700 new private residential units (excluding ECs) were completed, a quarterly drop of 23.2% compared to the 911 units that developers finished in 1Q2026. The first half of 2026 saw 1,611 private residential units completed, considerably lower compared to 2,329 units in 1H2025 and the 2,123 units in 1H2024.

Looking ahead to 2H2026, approximately 5,012 new private residential units will be completed according to URA. This translates to around 2,506 completed units in each upcoming quarter, which will alleviate some of the demand pressures in the rental market.

For landed properties, the rental index rose by 2.7% q-o-q in 2Q2026, a much faster rate compared to 0.1% growth that this segment of the market posted in 1Q2026. Landed rental transactions also saw a marginal growth by 0.5% q-o-q in the second quarter.

Private rental saw modest rental growth, with the CCR posting the highest

Across the three major market segments, private residential rents in the prime areas or Core Central Region (CCR) rose by 1.2% q-o-q in 2Q2026, higher than the 0.5% quarterly increase it registered in 4Q2025.

In the city fringe or Rest of Central Region (RCR), condo rents registered zero growth after dipping 0.2% in the first quarter. Meanwhile, in the suburbs or Outside Central Region (OCR), condo rents fell by 0.3% q-o-q, an about-turn compared to the 1% increase in 1Q2026.

Based on URA Realis data, the overall private residential rental volume (landed + non-landed excluding ECs) rose by 5.1% on a quarterly basis, from 21,203 units in 1Q2026 to 22,290 units in 2Q2026. Year-on-year, the private rental volume has increased by 3% compared to the 21,638 units rented in 2Q2025.

More private rental transactions registered in the second quarter. (Source: URA, Realion (OrangeTee & ETC) Research)

As more multinational corporations establish or expand their regional presence in Singapore in the new financial year cycle, expatriate inflows could drive up the overall demand in the rental market for the rest of this year. As rental prices show signs of stabilisation, tenants may be prompted to sign their leases, says Realion.

Based on anecdotal observations cited by Realion, macroeconomic factors such as job changes or corporate restructuring have impacted the rental demand from expatriate professionals, in particular those working in sectors affected by automation and artificial intelligence (AI).

If the macroeconomic outlook deteriorates, and multinational companies reduce the number of expatriates coming into Singapore, this could result in a softening of rental demand in the second half of 2026.

In general, despite the rental increase, occupancy rates across the housing market remained healthy at 93.6% in 2Q2026.

In the public housing market, as more flats obtain their five-year minimum occupation period (MOP) in the upcoming months, landlords may face stiff competition for tenants as more rental listings emerge.

This is especially true for newly MOP flats in coveted locations such as Toa Payoh and Tampines, or flats that possess desirable locational attributes such as high connectivity and proximity to public transport nodes such as MRT stations.

HDB rental demand rose even as rents held largely steady

Seasonality plays a big part in Singapore’s rental trends. In the second quarter of this year, a spike in HDB rental demand was driven by international students returning from their spring break and renewing their leases, or to sign new leases before some schools start their academic year in 3Q2026.

Rental demand in the HDB market is also supported by an increase in approved applications to rent out HDB flats. According to HDB data, the figure grew by 4.9% q-o-q from 9,535 units in 1Q2026 to 10,002 units in 2Q2026.

Approved applications for HDB rental rose. (Source: URA, Realion (OrangeTee & ETC) Research)

Year-on-year, rental volumes dropped slightly compared to 10,066 leases in 2Q2025, indicating stable demand.

In 2Q2026, HDB rental prices picked up by 0.4%, according to the SRX-99.co HDB rental price index. In 1Q2026, HDB rents increased by 0.5%, almost on par with 1H2025’s 0.6% growth, suggesting stabilised rental growth.

Rental market projection for private residential and HDB markets forecasts modest full year growth. (Source: URA, Realion (OrangeTee & ETC) Research)

With the overall level of public housing stock poised to increase over the next three years, the HDB rental market may need to brace itself for continued pressures, says Realion. For the whole of 2026, HDB rental prices are forecasted to hold steady at 1 to 3%, with leasing volume projected to reach 36,000 to 39,000 units in 2026.