Non-landed residential rents to drop 5% YoY in 2024

Savills said two factors might lead to rents failing.

The momentum from the influx of around 18,000 units of new completions and continued economic headwinds may lead to private non-landed rents dropping 5% YoY in 2024, Savills reported.

In 4Q23, rents fell 1.55% QoQ for all bedroom types (1-5 bedrooms).

Rents also fell across market segments, by 1.5% in the Core Central Region (CCR), 0.8% in the Rest of Central Region (RCR) and 2% in the Outside Central Region (OCR).

On a QoQ basis, the average median rents dropped the most for 4-bedroom units (3.9%), followed by the 1-bedroom (1.8%) and 3-bedroom (1.7%) units.

On a YoY basis, average rents rose 4.8% in 2023, lower than the 6% uptick in 2022. RCR rents increased the most (5.3%) followed by the OCR (5%) and the CCR (3%).

Meanwhile, District 1 recorded the highest median rent of $9,000 per month, and District 9 recorded the lowest at $7,650 per month in 4Q23.