Condo Rents Ease 0.6% in May After Hitting Record High in April

Declines were broad-based across all three regions. The Core Central Region (CCR) held up best, slipping just 0.4% month-on-month to 146.6 while remaining 2.8% higher year-on-year, the strongest annual gain among the three regions. Leasing activity in the CCR moderated to an estimated 1,782 units, down 14.2% month-on-month, as prime-market tenant demand consolidated after several firmer months near the CBD.

The Rest of Central Region (RCR) eased 0.6% to 140.9, though rents remained 0.9% higher year-on-year. Leasing volume softened to an estimated 1,958 units, down 8.9% month-on-month, reflecting a steadier but more measured tenant appetite for accessible city-fringe locations.

The Outside Central Region (OCR) recorded the steepest monthly price decline, with rents down 1.0% to 142.6, though still 1.4% higher year-on-year. Volume eased to an estimated 2,113 units, down 6.8% month-on-month. The OCR remained the largest segment by volume share at 36.1%, supported by upgrader and right-sizer demand for larger units at more manageable quantum.

Overall condo rents consolidated off April’s record, with leasing volume still comfortably above five-year norms. Volume share stayed balanced across regions, with the OCR contributing 36.1% of May rentals, followed by the RCR at 33.5% and the CCR at 30.4%. This points to broad-based tenant demand across suburban, city-fringe, and prime locations.

New private housing completions continue to add leasing options for tenants, keeping landlords more price-disciplined. Singapore’s labour market remained resilient in Q1 2026, with employment expanding for the 18th consecutive quarter and unemployment and retrenchments broadly stable. This provides a steady base for occupier demand, although hiring growth has moderated.

Condo rents are likely to remain broadly stable, with modest month-on-month movements driven by region, unit type, and leasing mix. With overall rents consolidating just off their record high, affordability remains the key tenant constraint, especially for higher-quantum prime homes. The CCR’s relative resilience in May suggests selective demand for prime-area rentals remains intact.

Rental growth is likely to stay measured rather than aggressive in 2026. Demand should remain supported by employment resilience and continued tenant mobility, but rising housing options and price sensitivity will likely limit sharp rental increases. Better-located projects near transport nodes, employment centres, and lifestyle amenities should continue to outperform.

May’s figures point to a maturing rental market, with leasing activity easing off a high base and rents consolidating just below their record. The market is entering a more balanced phase, where performance will be shaped less by broad rental escalation and more by location, affordability, unit quality, and landlord pricing discipline.