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PRIVATE condominium rents rose 0.5 per cent in October, as leasing volume fell for the third straight month to 5,712 units, down 7.5 per cent from September, according to data from 99-SRX.

In contrast, rental volume in the public housing market rose 2.9 per cent month on month with 2,398 Housing and Development Board flats leased. Rents rose 0.5 per cent, and a supply crunch is pushing rents higher.

Luqman Hakim, chief data and analytics officer at 99.co, said: “The limited number of (HDB) units reaching the minimum occupation period has intensified the supply crunch, pushing rents higher. This trend is likely to sustain rental growth through the end of 2024, with potential increases of 2 to 3 per cent.”

The contrasting performances of the HDB and condo rental markets “highlight the diversity of tenant preferences”, noted Luqman.

“Some renters are shifting to private properties, drawn by stabilising rents and lower borrowing costs. This trend may help private rental prices stabilise further,” he added.

Year on year, overall condo rents were 2.8 per cent lower. Leasing volume was up 5.3 per cent on year, but 5.5 per cent lower compared with the five-year average for the month. Volume was roughly equally spread across all regions. 

Small uptick

In October, rents rose 0.5 per cent for condos in the prime Core Central Region (CCR), and were 0.8 per cent higher in the city-fringe Rest of Central Region (RCR). Suburban condo rents in the Outside Central Region (OCR) were flat for the month.

“Rental markets across both (condo and HDB) segments could benefit in the coming months from improving business sentiment and employment growth, driven by lower borrowing costs. For now, HDB rentals remain a sought-after choice, particularly for those seeking affordability and larger flat types,” Luqman said.

ERA Singapore’s head of research and market intelligence, Wong Shanting, noted that the “small uptick in condo rents in October likely represents a brief market rebound, and not a shift away from the prevailing trend of price stability”.

Christine Sun, chief researcher and strategist from OrangeTee Group, said that the increase in private condo rents could be due to more luxury homes being leased out during the month.

She added that the CCR formed a slightly higher proportion of the market share at 32.2 per cent in October 2024, up from 30.9 per cent in May 2024. 

“This shift suggests a gradual increase in demand for premium housing as rent gaps continue to close within market segments,” Sun said.

By region, rents were lower compared with the year-ago period, falling 3.9 per cent in the CCR, 3.3 per cent in the RCR and 2.3 per cent in the OCR.

Mark Yip, chief executive officer of Huttons Asia, said that the condo rental market could end the year flat as demand slowly returns on the back of an improving economy.

“With an unprecedented five private launches in November, some buyers might sell their existing property and rent in the interim. This may provide some support to the HDB rental market and HDB rents could increase between 3 and 4 per cent in 2024,” he added.

Registering gains

Overall HDB rents gained 4.6 per cent on the year, with both mature and non-mature estates logging 5.6 per cent and 3.5 per cent gains, respectively. Executive flats recorded the largest increase at 6.4 per cent, followed by three-room flats at 5.6 per cent. Five-room units rose 4.1 per cent, and four-roomers were up by 3.9 per cent.

Year on year, HDB leasing volumes fell 16.1 per cent, and were also 13.3 per cent lower against the five-year average for October.

In October, rents rose 0.9 per cent month on month in mature estates, but fell 0.2 per cent in non-mature estates. Rents were up 1.2 per cent for three-room flats, 0.7 per cent for five-room flats and 0.8 per cent for executive flats. Rents for four-room units dipped 0.3 per cent.