Private Residential Rents Rise 0.7% in Q2 2026 as Home Prices Inch Up 0.5%

Rents for Singapore private homes were up 0.7% in Q2 2026, rising slightly faster than the 0.3% increase in Q1, according to confirmed URA data released on 24 July. Landed property rents rose the most at 2.7%, a sharp acceleration from the 0.1% gain in Q1. Non-landed home rental growth was flat at 0.4%, mirroring the rise in the first quarter.

Prime area rents in the Core Central Region (CCR) outpaced other segments, rising 1.2% in Q2 versus a mild 0.5% uplift in Q1. Rents in the city-fringe Rest of Central Region (RCR) were unchanged after slipping 0.2% in Q1. Suburban area condos eased 0.3%, reversing from a 1% increase the previous quarter.

Knight Frank’s research head Zheng Weiming attributed the strong landed rent growth to demand from new citizens, permanent residents, and expatriates adjusting their housing arrangements. Realion’s Christine Sun observed that foreign professionals in recent months have been adjusting housing plans, particularly those affected by automation and AI-driven corporate restructuring.

Private home prices rose 0.5% in Q2 2026, matching the flash estimate released in early July and down from the 0.9% increase in Q1. H1 cumulative price growth was just 1.4%, the weakest first-half performance since 2020. Realion’s Sun noted that price growth has been steadily decelerating since H1 2022’s 4.2%, indicating the market is stabilising.

By segment, CCR prices rose 1.8% in Q2, up from 0.6% in Q1. However, RCR prices reversed from gains to a 1.2% decline, and OCR prices also turned negative at -0.1%. Landed property prices rebounded strongly, rising 2.5% in Q2 after declining 0.4% in Q1. Knight Frank’s Zheng said demand for landed homes remains strong, especially in the $5 million to $10 million segment, projecting full-year landed price growth of 3% to 5%.

In the primary market, developers launched 1,783 private homes (excluding ECs) for sale in Q2, about 3% fewer than Q1’s 1,844 units. Sales volume, however, rose to 2,141 units from 2,013 previously, with resale transactions climbing 18.2% to 3,813 units. Total transaction volume (excluding ECs) reached 6,148 units.

On the supply side, 1,212 private housing units were completed in Q2 (512 ECs and 700 private units), pushing the vacancy rate to 6.4% from 6.2%. In H2 2026, another 5,012 private homes including ECs are set to be completed, with 9,704 units in 2027, 11,204 in 2028, and 10,188 in 2029. Beyond that, more than 24,000 units will be completed, bringing total completions to over 60,625 units over the coming years.

Analysts project private home prices to rise 2% to 5% for the full year, with full-year transaction volume (excluding ECs) estimated at 21,000 to 25,000 units. Huttons notes developers are expected to launch 7,000 new private units this year, the lowest since 2023, keeping supply tight. ERA expects several attractive new launches in Q3 that could redirect some resale demand.

On the rental front, Sun projects overall private rents to increase 2% to 3% for the full year, noting that if macroeconomic conditions worsen, H2 demand may slow. The uptick in rents came even as the vacancy rate edged higher, following the completion of 1,212 units during the quarter.