Market Rent Comparables: How to Benchmark for Fair Increases in Singapore
Market rent comparables are similar nearby properties' current rental rates used to justify fair rent increases during tenancy renewals in Singapore. Homejourney verifies these benchmarks to ensure transparent, safe decisions for tenants and landlords, preventing disputes and promoting trust in every transaction.
This cluster focuses on actionable steps for benchmarking market rent comparables for rent adjustment and increase rent renewal, linking back to our pillar Singapore Rental Rights Guide for full tenant-landlord coverage. With no rent control in Singapore, increases must align with market rates to avoid Small Claims Tribunal challenges.[2]
Why Benchmark Market Rent Comparables?
Singapore's rental market stabilized in 2026, with private rents up 1.9% in 2025 and HDB approvals rising 7.5% to 39,408 units.[2] Landlords proposing a rental increase must show evidence from market rate rent data, while tenants can negotiate using the same comparables for fair rent adjustment.[1][2]
Homejourney prioritizes user safety by analyzing verified data, helping you spot overpriced proposals. For example, a 4-room HDB in Bedok ($520,000 value) rents at $3,000-$4,000 monthly in non-central areas, but $4,500+ near MRTs like Bedok North MRT (5-min walk).[2] Insider tip: Central estates like Geylang yield 5.1%, commanding 5-10% premiums due to amenities.[2]
Legal Framework for Rent Increases in Singapore
No statutory caps exist on raise rent amounts; agreements follow common law and tenancy contracts.[2] HDB subletting requires approval, with IRAS taxing rental income.[4] Stamp duty (0.4% of annual rent) applies to leases over 1 year.
Annual Value (AV) by IRAS uses market rent comparables of similar properties, not actual income, ensuring taxes reflect current rates.[4] Disputes go to Community Mediation Centre first, then Small Claims Tribunal (up to $20,000).[2] Homejourney advises documenting all negotiations for protection.
Key Regulations to Know
- Stamp Duties Act: 0.4% on annual rent for 1+ year leases.[2]
- HDB Rules: Minimum 6-month sublets; no whole-flat subletting for 1-2 room flats without approval.
- IRAS: Report rental income; AV based on comparables.[4]
- State Courts: Handles evictions and deposit disputes.
Disclaimer: This is general guidance; consult professionals for legal advice. Homejourney connects you to verified agents at https://www.homejourney.sg/agents.
Step-by-Step Guide to Benchmarking Market Rent Comparables
Follow these tactical steps for market rent comparables during increase rent renewal:
- Identify Your Property Type: Note size, age, location (e.g., OCR condo vs. mature HDB). Use Homejourney's projects directory for verified comps.[2]
- Gather Comparables: Select 5-10 similar units within 1km, same tenure (99-year/leasehold). Check recent rentals (last 3-6 months).[1][2]
- Adjust for Differences: Factor furnishings (+10-15%), condition, MRT proximity (e.g., 5-min walk adds 5-10%).[2]
- Calculate Fair Range: Average comps; propose 2-7% increase max for 2026 stability.[2]
- Document & Negotiate: Share comps in writing 2-3 months pre-expiry. Renew via amended lease.
Example: Adam Green condo (District 9, CCR) held at $4,000-$4,100/month from 2023-2026, showing stability.[3] A similar 2-bed unit nearby benchmarks at $5,000-$7,000 in RCR.[2]
2026 HDB & Condo Benchmarks Table
| Region | Type | Sample Rent (2-3 Bed) | Yield | Fair Increase (2026) |
|---|---|---|---|---|
| CCR | Condo | $6,000-$8,000 | 2.5-3.5% | 2-5% |
| RCR | Condo | $5,000-$7,000 | 3-4% | 2-5% |
| OCR | Condo/HDB | $4,000-$6,000 / $3,000-$4,500 | 3-4% / 4.6-5.1% | 3-7% |
Source: Homejourney analysis.[2] Search verified rentals at https://www.homejourney.sg/search?status=For+Rent.
Practical Tips for Tenants and Landlords
For Tenants: Counter high rental increase with 3-5 comps showing stability (e.g., concessions in 37.3% of CCR listings).[1] Negotiate maintenance/parking inclusions.
For Landlords: Justify via URA indices and HDB approvals; check financing impacts at https://www.homejourney.sg/bank-rates. See How to Increase Rent on Tenancy Renewal: Singapore Guide | Homejourney ">How to Increase Rent on Tenancy Renewal for templates.
Insider tip: In softening markets like 2026 CCR, offer 1-2 months free to retain good tenants, reducing vacancy risks.[1] For maintenance, use Aircon Services ">aircon services.
Common Issues and Solutions
Issue 1: Landlord demands 10%+ without comps. Solution: Request evidence; mediate if needed.[2]
Issue 2: Tenant rejects market-based hike. Solution: Show 5 comps; offer phased increase.
When disputes arise, reference Deposit Dispute Templates & SCT Strategies for SG Landlords | Homejourney ">Deposit Dispute Templates or seek Homejourney agents.
FAQ: Market Rent Comparables in Singapore
What are fair rent increases for 2026? 2-5% for condos, 3-7% for HDB, based on comps and URA data.[2]
How do I find market rent comparables? Use Homejourney's property search and projects directory for verified listings within 1km.[2]
Is there rent control in Singapore? No; increases must be market-justified via comparables.[2]
Can I challenge a rent increase? Yes, via mediation or SCT with your own comps.[2]
Does IRAS use comparables? Yes, for Annual Value taxation.[4]
Trust Homejourney for safe rentals. Search now at https://www.homejourney.sg/search?status=For+Rent or connect with agents at https://www.homejourney.sg/agents. Explore our pillar Singapore Rental Rights Guide for more.
