02 Sep 2024
1H2024 Singapore Rental Market Insights: School Proximity and Pricing Trends
Property Insight

The rental property market in Singapore during the second quarter of 2024 demonstrated notable trends and adjustments. The overall rental index showed a further moderation, with rental prices decreasing by 0.8% in 2Q2024, a smaller decline compared to the 1.9% drop in 1Q2024. This period also marked a stabilization in the market as rental prices in the first half of 2024 adjusted by -2.7%, a significant change from the 10.2% increase observed in the first half of 2023. The moderation can be attributed to the influx of newly completed developments entering the market, adding to the rental supply.

The number of non-landed rental contracts rose by 1.9% quarter-on-quarter, from 18,878 units in 1Q2024 to 19,558 units in 2Q2024. This increase is likely driven by the high volume of private developments completed in 2023, which have now entered the rental segment. The year-on-year growth of non-landed rental contracts in 1H2024 was 2.4%, reflecting continued demand for such properties. It is projected that the total non-landed rental volume for 2024 will fall between 78,000 and 80,000 contracts.

Newly completed developments, particularly those that obtained their Temporary Occupation Permit (TOP) recently, such as Normanton Park, Treasure at Tampines, Parc Clematis, and The M, have shown strong rental demand. Renters seem to favor newer units due to their fresh condition and minimal wear and tear.

Core Central Region (CCR) districts continued to lead in rental popularity, with District 9 securing the highest number of non-landed rental contracts in 1H2024, followed by Districts 10 and 15. These districts remain desirable among renters, underlining their prominence in the rental market.

The HDB rental market also experienced growth, with rental approvals increasing by 1.7% quarter-on-quarter from 9,398 in 1Q2024 to 9,554 in 2Q2024. A significant portion of these approvals (36.9%) were for 4-room flats, which saw the highest number of rental approvals since 3Q2023. Jurong West recorded the highest number of HDB rental transactions in 1H2024, followed by Tampines and Sengkang.

Despite the overall moderation in HDB rentals, the resale market strengthened in 1H2024, with a 6.9% increase in resale transactions compared to 1H2023. This trend indicates a shift towards resale flats among homeowners, partly due to the limited number of flats reaching their Minimum Occupation Period (MOP) in 2024.

School proximity significantly influenced rental growth in areas like Bukit Batok and Hougang, where highly sought-after schools like Princess Elizabeth Primary School and Holy Innocents' Primary School are located. The scarcity of larger flats and the high demand for school enrollment contributed to notable increases in rental prices in these areas.

Overall, the rental market in Singapore is stabilizing, supported by strategic housing initiatives from the government. These initiatives aim to alleviate rental pressures by boosting housing supply and providing targeted support for those in need, ensuring a balanced and accessible rental market for residents.

Click here for the full report  

  

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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07 Aug 2026
Singapore Shophouse Market 1H2026: Higher Value Deals Drive Investment Growth

Singapore's shophouse market in 1H2026 demonstrated continued resilience despite a moderation in transaction volumes, with investment activity increasingly concentrated in higher-value assets. While the number of caveated shophouse transactions declined from 34 deals in 1H2025 to 25 deals in 1H2026, the total transaction value increased by 14.9% year-on-year, rising from $234.7 million to $269.5 million. This suggests that investors remained willing to deploy significant capital into larger, well-located and higher-quality conservation assets, reinforcing confidence in the long-term fundamentals of the shophouse sector.

Investor preference continued to favour longer-tenure properties. Freehold shophouses accounted for 76.0% of total transaction value in 1H2026, broadly unchanged from the previous year, while transaction value within this segment increased substantially from $176.7 million to $224.0 million. Although 99-year leasehold properties recorded a higher share of overall transactions compared to a year ago, demand remained firmly concentrated in freehold and 999-year leasehold assets, which together represented 84.0% of total transaction value. This reflects continued demand for scarce commercial assets that offer long-term capital preservation, stable rental income and limited exposure to lease decay.

Looking ahead, investment demand is expected to remain resilient through the second half of 2026, supported by Singapore's healthy economic performance, lower interest rate environment and the structural scarcity of conserved shophouses. Investors are likely to continue prioritising well-located assets offering resilient rental income, asset enhancement opportunities and long-term capital appreciation. The combination of limited supply, heritage value and stable income-generating potential is expected to provide continued support for transaction values and reinforce the long-term attractiveness of Singapore's shophouse market.

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here

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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07 Aug 2026
Berlayar Drive GLS Attracts Sole Top Bid of $576.8 Million

The Berlayar Drive Government Land Sales site attracted a sole bid of $576.8 million, equivalent to $1,515 per square foot per plot ratio, from a joint venture between Intrepid Investments Pte. Ltd. and GuocoLand (Singapore) Pte. Ltd. The bid underscores the developers’ continued conviction in the long-term potential of the Greater Southern Waterfront and their commitment to establishing a presence within one of Singapore’s most significant waterfront transformation precincts. 

Although the site received only one bid, this should not necessarily be interpreted as weak confidence in its prospects. Instead, it reflects increasingly disciplined land-acquisition strategies amid a larger GLS pipeline and more selective capital deployment. With a wider range of sites available, developers are likely to prioritise parcels that best complement their existing landbanks, development pipelines and risk profiles.

Berlayar Drive is the second private residential parcel within the new estate, following the Telok Blangah Road site. A further residential parcel at Berlayar Close is expected to be launched in December. This phased release reflects the Government’s measured approach to developing the Greater Southern Waterfront, allowing future housing supply to be introduced progressively rather than all at once.

The Berlayar Drive site is expected to yield approximately 415 residential units. Its smaller project scale should require a lower upfront capital commitment and reduce construction, financing and market-absorption risks compared with larger developments. The site also carries a maximum building height of five storeys, creating the potential for a distinctive low-rise residential offering focused on privacy, greenery and resort-style living.

Future residents are expected to benefit from proximity to Telok Blangah MRT station, VivoCity, Sentosa, the Southern Ridges and Labrador Nature Reserve. This combination of connectivity, retail and lifestyle amenities, waterfront surroundings and access to nature is likely to support healthy long-term owner-occupier demand.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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07 Aug 2026
Chitty Road and Veerasamy Road GLS Tender Draws $35.3 Million Top Bid

The tender for the Chitty Road and Veerasamy Road Government Land Sales site attracted seven bids, with YK Land Pte. Ltd submitting the highest offer of $35.3 million. The bid translates to approximately $962 per square foot of site area and was substantially higher than the second-ranked bid of $23.8 million, or $650 per square foot, submitted by Conint Pte Ltd and SEEDoE Ventures Pte Ltd. RPC One Pte Ltd placed third with a bid of $23.7 million. 

The site benefits from strong accessibility and a central location. It is within walking distance of Jalan Besar and Little India MRT stations, while Bugis, Rochor and the Central Business District are also nearby. Opportunities to acquire an entire cluster of conserved residential buildings in Singapore’s Central Area are exceptionally rare, giving the project the potential to become a distinctive heritage residential development.

Under the SA2 option, the site may accommodate up to 36 serviced apartment units with a minimum stay of three months. This could appeal to professionals, expatriates and other residents seeking medium- to longer-term accommodation. The higher unit yield may also offer the developer recurring rental income and greater operational flexibility.

Alternatively, the site could be developed into up to 18 strata landed houses, subject to approval. This option may appeal to affluent owner-occupiers and collectors seeking rare, restored heritage homes within a city-fringe location. With few new landed developments entering the market, the combination of conservation architecture and modern residential use could create a highly differentiated product.

The development’s value creation potential will depend less on maximising density and more on delivering a high-quality restoration. The investment proposition is therefore centred on placemaking, heritage preservation and product differentiation. The site may also benefit from the wider transformation of the surrounding precinct, including continued public investment and the nearby River Peaks I and II public housing developments.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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