Singapore Condo Rental Market 2026: Where Demand Is Holding and Where It's Softening
After the extraordinary rental surge of 2022 to 2023, Singapore's condo rental market has been normalising. But "normalising" doesn't mean collapsing, and it's not uniform across the island.
Singapore's rental market was exceptional in 2022 and 2023. A combination of construction delays (post-COVID supply backlog), surging expatriate demand, and limited resale inventory drove rents to levels not seen in over a decade. Some units doubled in monthly rent within two years.
That period is over. The question now is: what does normal look like, and where should investors be positioning?
Where We Are in 2026
Rents have corrected from their 2022 to 2023 peaks by approximately 10% to 20% across most segments, with some areas seeing steeper declines. However, absolute rental levels remain significantly higher than pre-2019, the market has not fully reverted.
The rental adjustment has been most pronounced for:
Larger units (3 and 4 bedrooms): These saw the biggest run-up and are also seeing the sharpest corrections. Expats who could previously claim housing allowances have seen those budgets tighten, and demand for large units has softened.
Mass market OCR condos in areas with high new supply: Towns with significant pipeline completions, Tengah, Tampines North, Punggol, are seeing increased rental competition as new units enter the market.
Where Demand Is Still Holding
1 and 2 bedroom units in established locations. Rental demand for smaller units near the CBD, Buona Vista, Novena, and One-North remains relatively resilient. Professionals, young couples, and single expats continue to rent in these corridors.
Locations near business parks and hospitals. One-North, Science Park, Changi Business Park, and Novena Medical Hub generate consistent professional rental demand that is less correlated with general expatriate housing trends.
Developments with rare amenities or unique positioning. Waterfront units, integrated developments with mall access, and established lifestyle condo estates continue to attract tenants willing to pay a premium.
Short-term stay demand in select locations. Urban locations with strong AirBnB demand (where legally permitted for minimum stay periods) can supplement rental income in specific zones.
What Investors Should Recalibrate
Yield expectations. The 4%+ gross yields achievable on some units during the peak are not the new normal. In most segments, gross yields have returned to 3% to 3.8% range. At 4% to 5% mortgage rates, cash-on-cash returns require careful modelling.
Vacancy periods. The period when a unit sits vacant between tenants has lengthened in oversupplied areas. In 2022, good units were re-leased within days. In 2026, budget 4 to 8 weeks vacancy in a realistic model.
Tenant expectations. Well-maintained, reasonably priced units with good appliances and prompt maintenance still let quickly. Overpriced or dated units now face extended vacancies that were rare two years ago.
Our Take
The rental market in 2026 rewards fundamentals. Location, unit type, pricing, and quality still determine outcomes, the frothy period where almost anything let quickly at any price is over. Investors who bought with realistic yield expectations in good locations are doing fine. Those who modelled peak rents into their mortgage serviceability are feeling pressure.
If you're evaluating a property for rental income, build your model on today's asking rents for comparable units, not what was achievable in 2023. And factor in at least one month's vacancy per year.
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Frequently Asked Questions
Are Singapore condo rents still high in 2026?
Rents have eased from their 2022 to 2023 peaks but remain higher than pre-2019 levels in most segments. The correction has been most significant for larger units and areas with high new supply. Smaller units in established, well-connected locations have held up better.
What is a realistic rental yield for a Singapore condo in 2026?
Gross rental yields for most Singapore condos range from approximately 3% to 3.8% in 2026. Net yields (after maintenance fees, property tax, agent fees, and vacancy) are typically 2% to 2.8%. Yields are higher in the OCR and lower in the CCR.
Which condo sizes are in highest demand from tenants in 2026?
1 and 2 bedroom units continue to see the strongest and most consistent demand. 3 and 4 bedroom units saw a more significant rental correction from 2022 to 2023 peak levels, as corporate housing allowances tightened and expat family demand eased.
What locations in Singapore have the most consistent rental demand?
Areas near the CBD, Novena, Buona Vista, One-North, and Changi Business Park consistently attract professional tenants. Proximity to hospitals, business parks, and established expatriate communities supports more stable rental demand through market cycles.
How do I calculate if a rental property makes financial sense in Singapore?
Start with gross rental income (based on current comparable units, not peak rents). Deduct maintenance fees, property tax, agent fees (typically 1 month per year), and an assumed 1 month vacancy. The result is net annual rental income. Divide by total capital invested (downpayment + stamp duties + renovation) to get net yield. Then compare to your loan cost.
Evaluating a Rental Property and Want an Honest Yield Analysis?
Serene & Mei provides clear, data-led rental yield assessments based on current market rates, not wishful projections. If you're buying for income, start with realistic numbers.
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