Singapore private residential rents expected to soften in H2 2023

This is despite the strong 7.2% rental growth seen in Q1.

According to a Savills report, the angst that foreigners experience when seeking new tenancies or negotiating renewals of their rental accommodation appears to be coming to an end. Although Q1/2023’s rental growth was still a strong 7.2% QoQ, the strength was concentrated in the first one and a half months of the year. 

“From mid-February, feedback from our leasing experts points to pockets of increasing slack, especially in the under S$10,000 monthly rental bracket. As this report goes to print in May 2023, and as more private non-landed projects complete and the vacant period starts to stretch, landlords are more willing to negotiate, something which they were less inclined to do at the start of the year,” the report said.

Here’s more from Savills:

Table 3A shows the percentage change in rents between March 2023 and January 2022. The cells in red indicate negative rental change. Table 3B shows the percentage change between March 2023 and December 2022.