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Rental Market Rebound

Singapore's private condominium rental volumes surged 27.2% month-on-month in March, while HDB rental volumes climbed 18.9% over the same period, signalling a robust rebound in leasing activity following the seasonal lull that typically characterises the first two months of the year. Rents across both segments edged higher, with condominium median rents rising approximately 0.5% MoM and HDB median rents posting a marginal 0.3% gain. The uptick in both pricing and transaction volumes suggests that demand-side fundamentals remain intact heading into the second quarter of 2025, even as global economic uncertainties weigh on buyer sentiment in the sales market.

  • Condo rental volume change (MoM): +27.2%
  • HDB rental volume change (MoM): +18.9%
  • Condo rent change (MoM): ~+0.5%
  • HDB rent change (MoM): ~+0.3%

Volumes Recover From Lunar New Year Dip

The sharp month-on-month jump in rental volumes was widely anticipated by market watchers, given that February's figures were depressed by the Lunar New Year holiday period, during which relocation activity and tenancy signings typically slow. March traditionally marks the start of the peak leasing season, driven by an influx of expatriate professionals relocating ahead of the mid-year corporate transfer cycle. The 27.2% rebound in condominium volumes, in particular, points to sustained corporate demand for centrally located units, with districts 9, 10, and 11 continuing to attract the bulk of expatriate tenants. HDB rental volumes, meanwhile, benefited from upgraders entering the leasing pool as they await completion of their BTO flats, a structural trend that has underpinned public housing rental demand since 2022.

Market Context

On a year-on-year basis, rental volumes for condominiums remain slightly above 2024 levels, reflecting a market that has stabilised after the correction from the post-pandemic rental spike. Median condominium rents across the island are hovering near S$3,700 to S$3,800 per month for a two-bedroom unit, having plateaued after the aggressive run-up seen between 2022 and mid-2023. HDB median rents have similarly levelled off, with four-room flats in mature estates commanding around S$2,800 to S$3,000 per month. The modest monthly rent increases recorded in March suggest landlords retain limited pricing power, particularly in the mass-market condominium segment where new supply from recently completed projects such as Lentor Modern and Sceneca Residence has expanded tenant options.

Supply Dynamics

The completion of several large suburban condominium projects through 2025 is expected to add meaningful inventory to the rental pool, particularly in the Outside Central Region. Analysts estimate that over 17,000 private residential units are slated for completion this year, the highest annual figure since 2017. This supply injection could temper further rent increases in the suburban and city-fringe segments, where vacancy rates have already softened compared with the tight conditions witnessed in 2023. In contrast, prime district condominiums with limited new completions may see rents hold firmer, supported by persistent demand from senior expatriate tenants on corporate housing budgets.

What This Means for Investors

For landlords and property investors, the March data offers a mixed but cautiously positive signal. Rental yields on suburban condominiums purchased at recent price levels remain compressed at around 2.8% to 3.2%, making it challenging to achieve positive cash flow after mortgage servicing costs. However, investors positioned in prime and city-fringe developments with strong tenancy profiles may continue to benefit from low vacancy and stable rents through the first half of the year. The key variable to watch over the coming quarters will be the pace at which newly completed units enter the rental market and whether tenant demand — particularly from the technology and financial services sectors — sustains the current absorption rate.

Outlook for Q2 2025

Market participants broadly expect rental volumes to remain elevated through April and May as the peak leasing season extends. However, any meaningful upward pressure on rents will likely be capped by the incoming supply wave and a cautious hiring outlook among multinational corporations operating in Singapore. Investors evaluating rental properties should focus on locations with limited near-term completions and proximity to employment nodes such as the CBD, one-north, and Changi Business Park, where tenant demand tends to be more resilient through market cycles. The balance between supply absorption and expatriate demand will ultimately determine whether rents stabilise or drift marginally lower as 2025 progresses.