Quick Answer — where the rental market sits entering Q2 2026
- Private residential rents grew 1.9% for full-year 2025 and are projected at 0% to 4% for 2026.
- Vacancy sits near 7%, ranging from 4%–5% in high-demand city-fringe markets to 8%–10% in newer OCR clusters.
- Median private-condo asking rent stabilised around S$4,300 / month despite heavy completions.
- OCR near-MRT new launches deliver 4.0%–4.5% gross yields; CCR remains in a 2.5%–3.5% band focused on capital preservation.
- ~7,000 newly completed units entered the resale / leasing market through early 2026, which caps rent growth even as underlying demand holds.
The big picture in three sentences
The Singapore rental market exited 2025 in a transition phase: rents had stabilised after the 2022–2023 surge, vacancy had normalised, and new supply was working through the system. Entering Q2 2026, the picture is one of measured equilibrium — rents are no longer falling, but nor are they rerating aggressively. Private full-year rental growth of 0%–4% is the consensus range across major Singapore real-estate analytics providers, with the mid-point closer to 2%.
Why the market equilibrated
Three forces converged. First, supply reset: roughly 7,000 units from 2022–2023 launches obtained TOP and hit the leasing market by early 2026, providing renters with choice. Second, demand normalised: the pandemic-era demand spike (families needing additional space, tenants upgrading from HDB to condos, returning expats) has flattened into a more predictable flow. Third, salary growth moderated: with Singapore wage growth at a measured pace in 2025, tenant budget ceilings set a visible lid on asking rents.
The result is a market in which landlords who priced realistically leased out within 4–6 weeks of listing, while those who chased wishful asking rents sat vacant for 8–12 weeks before accepting market-clearing rents. The spread between “optimistic asking” and “actual transacted” widened through 2025 and has now started to narrow in Q1 2026 as sellers learn the lesson.
Regional yields — a league table
Based on URA rental caveats matched to recent new-launch and resale transactions, gross rental yields by region at the start of Q2 2026:
| Cluster | Gross yield range | Character |
|---|---|---|
| OCR near-MRT new launches (Jurong East, Tengah, Woodlands, Punggol) | 4.0%–4.5% | Yield-first; cash-flow oriented |
| District 15 (Katong / Marine Parade) | 3.2%–3.8% | Lifestyle premium; expatriate-heavy |
| Jurong East CBD-2 launches | 3.5%–4.0% | Second-CBD thesis |
| RCR core (D3, D8, D14 fringe-prime) | 3.3%–3.7% | Professional-couple demand |
| CCR (D9, D10, D11, D1, D2) | 2.5%–3.5% | Capital-preservation; low-yield, prestige |
These are gross yields. Net yields (after property tax, MCST, maintenance, vacancy allowance and agent commission) typically run 0.8–1.2 percentage points lower. A 4.2% gross OCR yield usually nets to 3.0%–3.2%.
Vacancy — 7% is the Singapore new normal
The private residential vacancy rate moved through 2025 to settle near 7% for early 2026, which remains below the ten-year structural average but above the 2022–2023 tight trough. Within that 7%, the spread is substantial: 4%–5% in central-fringe markets with limited new supply (Queenstown, Redhill, Tiong Bahru, River Valley, Novena) versus 8%–10% in newly-completed OCR developments where tenants are still absorbing the additional inventory.
For landlords in the 8%–10% cluster, the practical implication is to price realistically, furnish for the archetype (see our First-Time Landlord Checklist), and accept a 3–6 week letting cycle as the market-clearing baseline.
Worked example — OCR yield vs CCR yield in 2026
Buy a 700 sqft OCR new launch at S$1.4m with 75% financing at 3.5%. Monthly rent S$4,200.
- Gross yield: 3.6% (below OCR top band, but positive cash flow after full deductions).
- Monthly mortgage: ~S$4,714 — rental covers ~89% of mortgage (positive after deducting depreciation and tax benefits).
Buy a 700 sqft CCR resale at S$2.3m. Monthly rent S$6,600.
- Gross yield: 3.4% (mid-CCR band).
- Monthly mortgage: ~S$7,740 on same LTV — rental covers ~85%. Negative cash flow; thesis is capital appreciation, not yield.
What landlords should do
Re-benchmark rent in the renewal cycle. Pull six-month URA rental caveats for your exact project, weigh by size and furnishing, adjust for your stack; use that as the renewal starting point. Trying to renew at +5% when the benchmark shows ±0% guarantees vacancy.
Fit out for tenant archetype. Corporate expat vs tech-professional vs local family vs student all want different things. Choose one and calibrate.
Move early. Start marketing at month 9 of a 12-month lease. Target a 30-day overlap between lease offer and new lease start.
What tenants should do
Negotiate more boldly in the 8%–10%-vacancy micro-markets. A well-presented 3BR in an OCR new launch with many competing units has real negotiating room.
Lock in 24-month leases where renewal risk is low. Diplomatic Clauses after 12 months protect expat tenants; local tenants typically secure a 2–5% rent discount for committing to 24 months versus 12.
Prioritise buildings where the MCST is active. In a softening rental micro-market, building management quality (facility uptime, pool/gym access, parcel-locker reliability) becomes a bigger differentiator.
Key takeaway
Q2 2026 enters with a rental market that has normalised rather than collapsed. Landlords keep negotiating power in tight city-fringe clusters; tenants hold it in newer OCR clusters. Yields remain attractive in OCR and Jurong East despite 2026 rate levels. The 2026 signal is balance, not drama.
Related reading on LovelyHomes
- Singapore rental yield guide 2026
- First-time landlord checklist: renting out your condo in Singapore
- Landlord guide for HDB and condo owners
- Tenant guide to renting in Singapore
- Rental stamp duty in Singapore
- Singapore property market outlook 2026
Authoritative sources
- Source: URA Rental Contracts Data.
- Source: URA Media Releases — Q1 2026 flash estimate.
- Source: MAS Financial Stability Review — November 2025.
Disclaimer: Market projections are commentary based on publicly available URA, HDB and MAS data and consensus ranges across major real-estate analytics providers as at publication. Projections are not forecasts and are not a recommendation to transact. Individual outcomes will vary by project, unit attributes, and tenant profile. LovelyHomes is an independent editorial publication.
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