Singapore residential leasing transactions down 1.9% in Q2

Less than 20,000 leases were closed during the second quarter.

Based on the Urban Redevelopment Authority’s Realis, a total of 19,699 leases were signed in Singapore in Q2/2023, representing a decline of 1.9% QoQ and 6.5% YoY. 

According to Savills, the leasing volume of landed homes fell by 8.1% QoQ to 1,089 transactions in Q2/2023. For non-landed condominiums and apartments, the largest decline in rental transactions was in Rest of Central Region (RCR), with a 2.8% QoQ decrease to 6,485 transactions in the quarter, followed by Outside Central Region (OCR) decreasing by 2.4% QoQ to 6,583 deals. 

In contrast, the leasing volume of non-landed homes in Core Central Region (CCR) increased by 1.1% QoQ to 5,542 transactions.

Here’s more from Savills:

Global economic headwinds and the persistence of high rents remained the main reasons behind the contraction of leasing activity in the reviewed quarter. Labour market conditions have softened over the last two quarters, in tandem with the moderation in economic growth due to global uncertainties. 

This has resulted in either a rescheduling of arrivals by expatriates or businesses putting on the hiring brakes for expats as cost savings and revenue generation have become priorities. 

At the same time, leasing demand from homebuyers, who rented homes in the interim while waiting for their new homes to be completed, could also shrink significantly with the completion of 7,366 private residential units in the first half of 2023.