Singapore Rent Forecast 2026: Cushman and URA Outlook
Singapore rents expected to rise 2-4% in 2026 per Cushman and Wakefield. Q1 2026 rental index +0.3% q/q, median rent S$5.13 psf/month. Key districts and trends.
By Invest Singapore Editorial · Updated September 23, 2026 · 4 min read
Quick answer: Cushman and Wakefield forecasts Singapore private residential rents will rise 2% to 4% in full-year 2026. URA Q1 2026 data shows the rental index up 0.3% quarter-on-quarter with median rent at S$5.13 per square foot per month, signalling the 2024-2025 correction has ended. CCR and RCR lead the recovery; OCR stays competitive on affordability.
What the Data Shows for 2026
The Q1 2026 URA private residential rental index reading of +0.3% marks the first sequential gain after two consecutive quarters of softening in H2 2025. The signal is modest but directionally significant: landlords who held properties through the 2024-2025 correction are now seeing the floor confirmed.
Cushman and Wakefield’s mid-year residential outlook places full-year 2026 rental growth in the +2% to +4% band. The firm cites three drivers:
- Constrained completions: new private residential supply in 2026 is below the 10-year average, limiting downward pressure on rents.
- Stable expat inflows: Singapore remains a regional headquarters hub; financial services, technology and biomedical firms continue to relocate senior talent to the city-state.
- Selective HDB spillover: HDB rental increases have moderated but public housing rents remain elevated, nudging some tenants toward private alternatives in the OCR.
Rental Snapshot by Market Segment
The table below summarises key metrics across Singapore’s three planning regions as of Q1 2026.
| Region | Median Rent (psf/month) | Q1 2026 Change (q/q) | Cushman 2026 Outlook |
|---|---|---|---|
| Core Central Region (CCR) | S$6.30 - S$7.20 | +0.5% | +3% to +4% |
| Rest of Central Region (RCR) | S$5.00 - S$5.80 | +0.3% | +2% to +3% |
| Outside Central Region (OCR) | S$3.80 - S$4.40 | +0.2% | +1% to +2% |
| Overall private market | S$5.13 | +0.3% | +2% to +4% |
CCR properties in Districts 9, 10 and 11 show the strongest recovery momentum, supported by premium expat demand. For investors weighing which geography to target, the RCR vs OCR comparison explains the yield-versus-appreciation tradeoff in detail.
Why the Correction Is Over
Singapore’s rental peak was in early 2023, when median psf rents touched S$5.90 before a staged retreat. Three factors triggered the reversal: a surge of completions from delayed pandemic-era projects, softening relocation budgets among MNCs, and government cooling measures reducing speculative leasing demand.
By late 2025, those headwinds had largely cleared. Completions dropped back toward long-run averages, corporate relocation activity stabilised, and tenant vacancy rates in CCR tightened below 6%. The Q1 2026 print confirms the normalisation phase has ended.
For investors tracking gross versus net returns, the distinction matters here: a 3% nominal rent increase translates to a different net yield depending on maintenance, vacancy and financing costs. The full methodology is covered in the gross vs net rental yield guide for Singapore.
District-Level Opportunities
Not all districts move in sync. Districts 1, 2 and 9 in the CCR are absorbing the bulk of returning expat demand. In the RCR, Districts 3 and 15 benefit from lifestyle amenity density and MRT accessibility. OCR districts such as 19 and 23 continue to attract price-sensitive tenants priced out of central areas.
Investors seeking the highest absolute yield rather than capital appreciation should cross-reference current vacancy rates by district. The highest rental yield districts in Singapore provides an up-to-date breakdown.
What to Watch in H2 2026
Two variables could push the outcome toward the upper or lower end of Cushman’s 2-4% range:
- Interest rates: if the Fed begins cutting in Q3 2026 as markets currently price, Singapore dollar mortgage rates follow with a 2-3 quarter lag. Lower financing costs typically support rental demand by drawing more owner-occupiers into purchasing, tightening the rental pool.
- New supply pipeline: approximately 8,500 private units are due for completion in H2 2026. If handover schedules accelerate, short-term vacancy pressure could cap rent growth near the 2% floor.
For the longer-term context on what rental yields in Singapore look like across property types, see the Singapore rental yield guide. For the most recent quarter-by-quarter data underpinning this forecast, the Q1 2026 rental market review has the full URA index breakdown.
Frequently Asked Questions
Cushman and Wakefield forecasts private residential rents will rise 2% to 4% year-on-year in 2026. The URA Q1 2026 rental index confirmed a +0.3% quarter-on-quarter gain, with median rents at S$5.13 per square foot per month, signalling the 2024-2025 correction has ended.
Core Central Region districts 9, 10 and 11 show the strongest rental recovery momentum in 2026, driven by premium expat demand from financial services and technology sectors. RCR districts 3 and 15 also attract consistent tenant interest due to MRT access and lifestyle amenities.
The data points to a stabilised market with modest upside: supply is below the 10-year average, expat inflows are steady and the rental floor has been confirmed by URA Q1 2026 data. Investors should compare gross versus net yield by district and factor in anticipated H2 2026 completions before committing.
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