SINGAPORE (EDGEPROP) - Rents of private non-landed homes in Singapore registered a decline in May, according to a rental market report by Savills. Citing data from URA, the average median rents for one- to four-bedroom units fell 2.2% m-o-m in May, reversing from a 2.4% increase recorded in April.

“For renters in Singapore, relief is in the air as rentals in more districts start to soften,” says Alan Cheong, executive director of Savills Research & Consultancy. Cheong adds that the weakening of rents was expected, given an influx of new supply in 2023 while challenging economic conditions have compelled companies to tighten budgets and reduce rental expenses for expatriate staff, or lay off employees.

Marcus Loo, CEO of Savills Singapore, adds that the softening rents come at a time when economic headwinds are putting a dampener on tenants’ budgets. “This rental correction allows the market to reset to a more sustainable foundation for the longer-term good of the economy,” he comments.

Nonetheless, while rents appear to be softening, Cheong says that the rental decline remains moderate, and overall yields for landlords remain healthy.

Savills’ report highlights that for three-bedroom condo units, rents declined 3.2% m-o-m in May. District 4 (which covers the Keppel, Mount Faber, Sentosa and Telok Blangah areas) was the submarket with the highest median monthly rents for three-bedroom units at  $9,300. District 1 (Boat Quay, Chinatown, Havelock Road, Marina Square, Raffles Place and Suntec City) was the second-highest submarket with a median monthly rent of $8,500, followed by District 9 (Cairnhill, Killiney, Leonie Hill, Orchard and Oxley) with a median monthly rent of $7,500.