Residential Real Estate Leases - Singapore

In Singapore, the projected revenue of the Residential Real Estate Leases market market is estimated to reach US$12.26bn by 2024.
Among the different segments, Apartment Leases dominate the market with a projected market volume of US$6.78bn by 2024.
Looking ahead, the market is expected to witness an annual growth rate (CAGR 2024-2029) of 5.54%.
This growth rate will contribute to a market volume of US$16.05bn by 2029.
The demand for residential real estate leases in Singapore continues to surge, driven by the city-state's status as a global financial hub and attractive investment destination.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Singapore is experiencing significant growth and development.

Customer preferences: Customers in Singapore are increasingly opting for residential real estate leases due to the flexibility and affordability they offer. Renting a property allows individuals to have a place to live without the commitment of purchasing a property. This is particularly appealing to young professionals and expatriates who may have short-term stays in the country. Additionally, renting provides the opportunity to live in desirable neighborhoods without the high upfront costs associated with buying a property.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Singapore is the rise of co-living spaces. These spaces offer shared living arrangements with a range of amenities, such as communal kitchens and social areas. Co-living spaces cater to the growing demand for affordable and flexible housing options, particularly among young professionals and expatriates. This trend is driven by the desire for a sense of community and the convenience of having shared facilities. Another trend in the market is the increasing popularity of serviced apartments. Serviced apartments provide a hotel-like experience with the comforts of home. They are fully furnished and equipped with amenities such as housekeeping and concierge services. Serviced apartments are particularly attractive to expatriates and business travelers who require temporary accommodation with the convenience of hotel services.

Local special circumstances: Singapore has a high population density and limited land resources, which has led to the development of high-rise residential buildings. The government has implemented strict regulations to ensure the quality and safety of these buildings. This has resulted in a well-regulated and reliable market for residential real estate leases. Additionally, Singapore has a strong legal framework that protects the rights of tenants and landlords, providing a secure environment for both parties.

Underlying macroeconomic factors: Singapore's strong economy and stable political environment contribute to the growth of the Residential Real Estate Leases market. The country is a global financial hub and attracts a large number of multinational corporations and expatriates. This creates a demand for residential properties, both for long-term leases and short-term stays. Furthermore, Singapore's strategic location in Southeast Asia makes it an attractive destination for business and leisure travelers, driving the demand for serviced apartments. In conclusion, the Residential Real Estate Leases market in Singapore is experiencing growth and development due to customer preferences for flexibility and affordability. The rise of co-living spaces and serviced apartments caters to the changing needs of individuals seeking temporary accommodation. Singapore's high population density and limited land resources have led to the development of high-rise residential buildings, while the government's strict regulations ensure a well-regulated market. The country's strong economy and stable political environment contribute to the demand for residential properties from both locals and expatriates.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Singapore

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Singapore

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts