Over the past few years, Singapore’s rental market has been nothing short of a roller coaster.
Remember 2022–2023? Many tenants were voicing frustrations like:

"My landlord wants to raise rent by 30%—or I have to move out!” Social media was full of stories of families relocating overnight."

By 2024, a wave of new housing completions finally brought some relief. Rents cooled down, and tenants could breathe again.
Now, entering the second half of 2025, the big question on everyone’s mind is:
“Will rental prices go up again?”

2025 Trends: Small Gains, But an Upward Tilt

According to data from Singapore’s Urban Redevelopment Authority (URA):

According to Release of 2nd Quarter 2025 real estate statistics

At first glance, 1.2% may sound trivial. But let’s break it down in real-life terms:
Imagine a family spending S$600/month on groceries. If rent rises S$150:
·That’s 25% of the food budget gone.
·It could mean cutting imported milk and cheese in half.
·Or cancelling a child’s weekly tuition class.
In other words, even a small percentage change can feel big in everyday life.

Regional differences are clear:
·Core Central Region (CCR): Strongest growth, nearly +2% in H1.
·Rest of Central Region (RCR): Almost flat, stable.
·Outside Central Region (OCR): Slight uptick, but limited movement.

The closer to the city, the stronger landlords’ confidence.

Condo vs HDB divergence:
·Condo：Down 0.4% MoM in May, but still +2.7% YoY.

·HDB ：rentals: Rising steadily, with ERA projecting +2–5% growth for 2025.
This shows demand for mass-market housing remains strong, even if the luxury market wobbles.

Shrinking Supply: The Key Driver Behind Rising Rents

Before diving into the numbers, let’s hear from Mark, an expat who shared his experience online:
“In 2024, I found a condo in just two weeks after moving to Singapore. By mid-2025, helping my colleague search with the same budget, we found half as many options.”

For tenants, this means acting faster and paying more. For landlords, it means negotiation power is back in their hands.
As Mark put it: “It feels like shopping on Shopee—if you’re late, the unit is gone.”

Mark’s case is no exception. It’s part of a bigger market shift, driven by four forces:
·Supply crunch: 8,460 new homes were completed in 2024. In 2025, only 5,000–6,000 units are expected—a 40% drop, creating natural upward pressure on rents.
·Demand recovery: With economic activity rebounding, more expats, multinational employees, and students are returning. Many young families, priced out of private housing, are also turning to rentals.
·Policy effect: Singapore’s Additional Buyer’s Stamp Duty (ABSD) has deterred foreign buyers, pushing some to rent instead. In some cases, landlords pass ABSD costs onto tenants through higher rents.
·Global environment: Interest rates are entering a downward cycle, drawing more capital into real estate and indirectly increasing rental demand.

Outlook: Will Rents Keep Rising

Forecasts from major institutions are generally aligned—expecting mild growth, not a repeat of the 2022–2023 surge.

·ERA (Q1 2025 Rental Market Report)
Projects 0–3% growth for private residential rents in 2025, while HDB rents could rise by 2–5% due to tighter supply and shifting family demand.

·Savills（2025 Snapshot of Singapore’s Rental Landscape）
More cautious, predicting rents will stay flat in 2025, reflecting market adjustment after 2024’s large supply wave.

·CBRE (Asia-Pacific Outlook 2025)
Doesn’t provide exact numbers but sees “moderate growth”, with CCR expected to outperform OCR.

Key takeaways:
·No major spike expected—those days are over.
·Mild growth is the most likely outcome, capped by supply shortages.
·Market divergence will widen: central luxury condos stronger, outer districts flatter.

Advice for Tenants & Landlords

·For landlords: Don’t raise rent blindly. The market is rational now—reasonable pricing attracts stable, long-term tenants.
·For tenants: If you plan to sign, act early—especially near the city center or school zones.
In 2025, the Singapore rental market looks more like a steady climb than a roller coaster ride. For landlords, it’s a year of stable returns; for tenants, while rent hikes are manageable, shrinking supply means less bargaining power.
In short: rents won’t spiral out of control, but don’t expect a bargain either.

In both renting and buying, accuracy of information and variety of choices matter most.
Singapore’s property landscape is diverse, but finding the right home requires trustworthy listings and professional guidance.
That’s where Housebell comes in. On our platform, all listings are provided by CEA-certified agents, ensuring every home is genuine. Whether you’re browsing rentals, considering purchase, or need quick advice, our online support team is ready to assist—making your housing journey smoother and more reliable.
Housebell – Your trusted partner for Singapore rentals and real estate.