Singapore Rental Market Q1 2026, Median Rent S$5.13 psf
Singapore rental index rose 0.3% q/q in Q1 2026, median rent held at S$5.13 psf. Forecast: plus 2-4% for full year 2026. OCR yields outpace CCR. Full breakdown.
By Invest Singapore Editorial · Updated September 23, 2026 · 4 min read
Quick answer: Singapore’s private residential rental index rose 0.3% quarter on quarter in Q1 2026, with median rent steady at S$5.13 psf. OCR continues to outperform CCR on gross yield. Full-year 2026 rental growth is forecast at plus 2 to 4%.
Singapore’s private rental market entered 2026 on steady ground. After the sharp rental spike of 2022 to 2023 and the correction that followed through 2024, the Q1 2026 URA data confirms a market finding its equilibrium rather than re-accelerating. Median rent of S$5.13 per square foot per month, with the rental index posting a 0.3% quarterly gain, describes a landlord environment that remains viable but demands realistic expectations on yield growth.
Rental Index: Second Consecutive Quarter of Modest Gains
The URA rental index for private residential property rose 0.3% quarter on quarter in Q1 2026. That follows a similarly marginal gain in Q4 2025 after several quarters of index softness through mid-2024 and early 2025.
The stabilisation is meaningful context for investors. The severe rental correction that began in late 2023 appears to have run its course. The question for 2026 is whether the base is now solid enough to support the 2% to 4% annual forecast most market analysts are projecting, or whether any supply surge from completions deferred from earlier years could apply renewed downward pressure.
For the full background on how Singapore’s rental yields are calculated and what drives them by district, the Singapore rental yield guide covers the mechanics and historical benchmarks in detail.
Median Rent at S$5.13 psf: What It Means by Region
The S$5.13 psf median figure is a market-wide average and masks significant variation by region and property type.
| Region | Indicative Median Rent (psf/month) | Gross Yield Range |
|---|---|---|
| CCR (Core Central Region) | S$6.50 to S$8.00+ | 2.5% to 3.5% |
| RCR (Rest of Central Region) | S$5.00 to S$6.50 | 3.0% to 4.0% |
| OCR (Outside Central Region) | S$3.80 to S$5.00 | 3.5% to 4.5% |
CCR commands the highest absolute rent per square foot but delivers comparatively weaker yields because purchase prices are proportionally higher. OCR reverses this dynamic: lower absolute PSF rents translate into stronger yields because the entry price per square foot is significantly lower.
This yield spread between regions is one of the central considerations covered in the highest rental yield districts in Singapore guide. Districts like 25 (Woodlands) and 27 (Sembawang/Yishun) in the northern OCR consistently appear in the upper yield range for investors prioritising rental return over capital appreciation pace. For a ground-level look at one of those districts, see the District 25 Woodlands property overview.
OCR vs CCR: The Yield Tradeoff
The OCR yield premium over CCR is structural rather than cyclical. It reflects four persistent factors:
- Lower purchase price per square foot. OCR condos frequently transact at S$1,200 to S$1,800 psf versus S$2,500 to S$4,000 psf in CCR prime districts.
- Broad tenant base. OCR draws HDB upgrader tenants, mid-level expat professionals, and local young families. CCR depends more heavily on senior corporate expat packages, a pool that has contracted since the ABSD increase reduced associated relocations.
- Shorter void periods. Suburban OCR units typically re-let faster than prime CCR apartments when a tenancy ends, partly because asking rents are within reach of a wider range of tenants.
- Lower maintenance costs. Boutique OCR projects often have smaller common facilities, reducing quarterly maintenance fees that erode net yield.
For investors doing the arithmetic between gross and net rental return, the gross vs net rental yield Singapore guide lays out the full deduction stack: maintenance fees, property tax, agent fees, and vacancy allowance.
2026 Rental Forecast: Plus 2 to 4% Year on Year
Consensus projections from Singapore-based property analysts place private residential rent growth at 2% to 4% year on year for 2026. Three demand drivers support that range:
- Finance and tech sector hiring. Singapore’s role as a regional hub for asset management, family offices, and Southeast Asia tech operations continues to draw mid-to-senior level expatriates. These tenants typically rent rather than buy given short assignment horizons and ABSD exposure on purchase.
- Limited near-term supply completions. The pipeline of units completing in 2025 and 2026 is below the elevated volumes seen in 2023 and 2024, which absorbed a wave of newly handed-over condos into an already-correcting rental pool.
- Stable economic backdrop. Singapore’s GDP growth outlook for 2026 remains constructive, which supports both domestic upgrader demand and expatriate employment levels.
The 2% to 4% range is nonetheless contingent on no significant policy change and no sharp deterioration in global financial conditions that could trigger relocation cuts among major employers.
Reading the Data Alongside Q1 Price Trends
The rental index gain of 0.3% q/q sits alongside the price index rise of 0.9% q/q reported in URA’s Q1 2026 flash data. Together they describe a market where capital values are recovering faster than rents, which is compressing gross yields modestly even as absolute rental levels hold. Investors underwriting deals at current prices need to model yields against today’s purchase price, since the lower purchase prices that shaped historical yield benchmarks no longer apply.
The full Q1 2026 market recap, including transaction volumes, regional price performance, and buyer nationality data, is in the Singapore Property Market Q1 2026 analysis.
Frequently Asked Questions
URA data puts the median rent for private residential units at S$5.13 per square foot per month in Q1 2026. The rental index rose 0.3% quarter on quarter, the second consecutive period of incremental gain after the correction from 2023 peaks.
OCR (Outside Central Region) gross yields typically run 3.5% to 4.5%, while CCR (Core Central Region) yields sit closer to 2.5% to 3.5%. The gap reflects OCR's lower entry price relative to achievable rents, particularly in suburban districts where HDB upgrader and expatriate demand overlap.
Analysts project private residential rents to rise 2% to 4% year on year in 2026, supported by steady expatriate inflows in finance and technology sectors and a limited near-term supply pipeline of newly completed units.
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