HDB rents are at a new record high in February: SRX, 99.co
Rents in February were down 6.9% compared to the 5-year average. The total rental volume was dominated by HDB flats with four rooms, followed by three-roomers at 31.7%. Twenty-five percent of the volume for this month came from five-room units. Rents may have increased for executive flats due to policy changes that led more tenants to move to larger HDB flats.
The expert believes that while condo rents are expected to stabilize in the second half of 2024, they will likely drop in the first. He also predicts an increase in HDB housing rents by up to 8% for the whole year as tenants look for more affordable options to live in amid a smaller supply of apartments reaching the MOP.
A limited number of new MOP apartments may help HDB rents for a little while, until private rents fall dramatically and threaten the HDB market.
SINGAPORE’s rental market for private housing remained weak in February 2024. Housing and Development Board (HDB), however, saw a rise to new highs after having fallen the month prior.
According to SRX’s and 99.co’s flash estimates, released Tuesday (Mar. 19, 2019), condominium rental rates fell 1 percent from January. This marks a net decrease for the 13th consecutive monthly.
99.co’s Chief Data and Analytics Officer noted that condo rental rates had fallen to their lowest level since January 2023. This downward spiral was attributed to a glut of supply that has been present since last summer.
In the past year, more condominiums were granted a temporary occupancy permit. As a result, there are now more rental homes available. Increased competition could have pushed rents down in certain areas.
In the near future, as private rents continue changing, some tenants might switch from HDB flats and private homes.
Rents for the Core Central Region fell 1.6% month-on-month in February 2024. The rents of the Rest of the Central Region fell 0.5%, while the Outside Central Region saw a decline of 0.6 %.
Overall rents dropped by 4 percent in one year. CCR rents were down by 5.7 percent, RCR and OCR rents both fell by 3.9 percent.
The rental volume for condos was also lower, with a decline of 21 per cent compared to the previous month.
This is a decrease of 11,9% compared to the average monthly volume over the last five years. In terms of region, 34.8 per cent of private rentals came from OCR, 32.8 per cent from RCR, and 31.4% from CCR. Condo rental markets are facing challenges as a result of increasing retrenchment rates and an increased number of homes available for lease.
The market offers more options for renters, and landlords are now more willing to negotiate rental terms.
The rents for HDB apartments rose 1 per cent from January to February, reaching a record high. But the volume of rentals fell by 19,1 per cent, to 2,448 from 3,027.
The rise in HDB rents is due to the strong demand of renters who are looking for relief from inflation, as condominium rents remain too high.
The decline in volume for HDB and condo housing rentals was mainly caused by the Chinese New Year in February. He expects both markets to recover in the second half of 2024.
The rents of HDB apartments in mature estates have increased by 1.3% month-on-month, while the rents for nonmature estates are up only 0.5 %.
All room types have seen a month-on month increase in rent, but executive units (2.6%) and four rooms (1.5%) are leading the way. Rents for HDB three-room units increased by 0.4 percent, while those of five-room HDB units saw an increase of 0.3 percent.
HDB housing rents increased by 8.4 percent on an annual basis, with mature estates rents rising 7.2 percent and non-matured estates rents rising 9.5 percent.
Rents rose for all types of rooms on an annual basis. For example, executive rents rose by 9 %, while rents in four-room apartments increased by 8.5% and those in five-room apartments by 8.1%. Rents for units with three rooms increased 7.8 per cent.
Rents in February were down 6.9% compared to the 5-year average.
The total rental volume was dominated by HDB flats with four rooms, followed by three-roomers at 31.7%. Twenty-five percent of the volume for this month came from five-room units.
Rents may have increased for executive flats due to policy changes that led more tenants to move to larger HDB flats.
The expert believes that while condo rents are expected to stabilize in the second half of 2024, they will likely drop in the first. He also predicts an increase in HDB housing rents by up to 8% for the whole year as tenants look for more affordable options to live in amid a smaller supply of apartments reaching the MOP.
A limited number of new MOP apartments may help HDB rents for a little while, until private rents fall dramatically and threaten the HDB market.
