Singapore’s rental market in 2025 continues to feel the effects of global inflation, rising interest rates, and high demand for housing. While landlords face increased costs, tenants are caught in the middle—juggling rising rents with everyday expenses like groceries, transport, and utilities.
So, how are renters coping? Let’s break down the numbers and explore real strategies tenants are using to stretch their budgets without sacrificing quality of life.
The 2025 Rental Landscape
- Rents remain elevated: Private residential rents rose by double digits in 2023–2024 and, while growth has slowed, prices remain historically high in 2025.
- Inflation pressures: Daily essentials—from food to healthcare—have risen alongside housing, pushing many households to rethink budgets.
- Shift in demand: More tenants are moving into HDB rentals and co-living spaces as affordable alternatives to private condos.
👉 For operators, this means tenants are price-sensitive and increasingly savvy about cost-saving strategies.
How Tenants Are Adapting
- Downsizing & Moving to Fringe Areas
Instead of renewing in central locations, some renters are shifting to city-fringe or heartland areas like Punggol, Yishun, or Jurong. Commutes may be longer, but the cost savings—sometimes 20–30%—make it worthwhile.
Pro Tip for Operators: Highlight proximity to MRT lines or bus interchanges in marketing. Tenants will pay attention if “longer commute” still equals “convenient travel.”
- Co-Living & Flat-Sharing
Once seen mainly as an expat choice, co-living is gaining popularity among locals. Renters see value in bundled utilities, housekeeping, and community events—all at a fraction of solo-rental prices.
Real-World Example: A two-bedroom unit in River Valley renting at $5,000/month may be split among three tenants via a co-living operator, bringing individual costs closer to $1,700 each.
- Shorter Leases & Negotiations
Tenants are becoming savvier negotiators:
- Asking for 12-month instead of 24-month leases to stay flexible.
- Requesting inclusion of utilities, Wi-Fi, or maintenance in the rent.
- Comparing multiple listings before committing.
For Operators: Flexibility is becoming a strong selling point. Even offering a one-month grace period on rent adjustments can set your listing apart.
- Energy & Cost Efficiency
Inflation doesn’t just affect rent—it shows up in electricity and water bills. Renters are:
- Switching to energy-saving appliances (with landlord approval).
- Using smart plugs, LED lighting, and water-saving fixtures.
- Tracking usage with apps to avoid bill shock.
- Side Hustles & Remote Work
A surprising adaptation? Monetising the rental itself.
- Some tenants are subletting a spare room (where lease permits).
- Others are turning rentals into WFH-friendly setups to cut co-working costs.
- Digital freelancing and side hustles are helping bridge the income gap caused by rising rent.
What This Means for Operators
Tenants are under pressure, but they’re not powerless. As an operator or landlord, understanding these behaviors can help you attract and retain renters:
- Market Value Transparently: Provide clear comparisons with similar units.
- Offer Flexible Packages: Shorter leases, bundled utilities, or furnished units.
- Highlight Savings: Market eco-friendly features (LED lighting, efficient AC) as cost reducers.
- Lean into Community: Position your property as more than just a space—offer amenities, events, or shared facilities that feel worth the price.
Final Thoughts
Inflation may be squeezing wallets, but renters in Singapore are adapting with creativity and flexibility. For operators, the key is not just to set the right price, but to understand the tenant mindset in 2025: value-driven, budget-conscious, and willing to explore new ways of living.
