Blog

HOUSING and Development Board (HDB) rents were slightly higher in October, up 0.5 per cent from the previous month. Rents increased by 0.9 per cent in mature estates, but non-mature estates experienced a 0.2 per cent decline for the month.

On Wednesday (Nov 20), SRX said that the HDB rental market is experiencing upward pressure on prices due to a constrained supply of available flats.

Luqman Hakim, chief data and analytics officer at 99.co, said: “The limited number of 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.”

By room types, prices 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. Meanwhile, rents for four-room units dipped 0.3 per cent.

Overall 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.

Year on year, executive flats recorded the largest price 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.

For the condominiums rental market, it continued to fall for the third consecutive month with 5,712 units rented in October, down 7.5 per cent from 6,172 units in September.

However, year on year, condo rental volumes were up by 5.3 per cent. Based on the five-year average volume for October, rental volumes were 5.5 per cent lower.

By region, 34.8 per cent of the total volume were from the Outside Central Region (OCR), 33 per cent were from the Rest of Central Region (RCR) and 32.2 per cent were from Core Central Region (CCR).

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

“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 said.

“Rental markets across both 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,” he added.

In October, rents in the condo market increased by 0.5 per cent. Prices rose 0.5 per cent in the CCR and 0.8 per cent in the RCR, while rents in the OCR remained flat in October.

Year on year, overall rents decreased by 2.8 per cent from October 2023, reflecting a stabilising market after previous declines, said SRX. 

ERA Singapore’s head of research and market intelligence, Wong Shanting, said 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, noted that the increase in private condo rents could be due to more luxury homes being leased out during the month.

She said 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, rental rates also saw prices coming down on the year – CCR (3.9 per cent), RCR (3.3 per cent) and OCR (2.3 per cent). 

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 per cent and 4 per cent in 2024,” he added.