SRX/ HDB lease market grows in momentum during December 2023

More landlords are willing to lower their rents. Also, more leases will be renewed in January 2024. Demand is expected to be maintained in January 2024 if tenants continue signing new leases or renewing leases at the beginning of the year.

On an annual basis, the rental volume fell by 11.6%. These figures were 12.6% below the December five-year average. The OCR made up 38.2%, the RCR 33.6% and the CCR 28.2% of all leasing volumes.

The decline in rental prices in December is a little less dramatic than in previous months. This was probably due to an increase in demand by new employees who began work at the beginning of the year.

In 2024 the landlords are likely to be hit with higher annual property values and taxes. Interest rates may still be high at the moment, so more landlords might opt to lower their rents instead of leaving the unit vacant.

Rents on private residential property could decrease 10 to 15% within the next 12 month as the dynamics of supply and demand continue to normalise.

The rate of growth for condo rental will remain at 2-5 per cent by 2024. It is significantly slower than the 29.7per cent that was recorded in both 2022, and 2021.

The leasing of condos has increased by 14% in the past month to approximately 5,644 units.

The rise in rental prices for all HDB room types

HDB continues to revitalize its rental market, with an overall rent increase of 1%. Rental prices in matured estates increased 1.2%, while rents in less matured estates grew 1.0%.

All room types have also seen rents increase. Three-room flats saw a 2.1% rise in rent, followed by flats with five rooms (1%) and executive flats (0.9%).

HDB rentals increased 10.1% from year to year. Rents in matured estates increased by 10,4 per cent while rents in non-matured ones increased by 10,3 per cent.

jden jurong east central 1

Executive flats grew the most in rent on the past year (14.7%). They were followed by three-roomers, five-roomers and four-roomers.

HDB leasing increased by 7.4 % to an estimated 2,891 apartment units in December, compared with 2,693 units in Novembre.

The figure was 12,8% more than in December 2022. But it was only 0.1 percent lower than the average of the last five December months.

Most of the leasing was done in four-room apartments, which accounted to 36.2%. Three-roomers were responsible for 34.1 percent of total leasing volumes, followed in order by five roomers (24%) & executive flats (5.7%).
Mixed Outlook

The HDB Rental Market is on the Rise, but Analysts are split on its Outlook for 2024.

HDB Rental Market, which offers affordable options for housing, will be resilient in 2024, with average rental rising by 8-10%. Experts have predicted the number to be between 37,500 and 38,000. And that it will remain unchanged between 36,500 and 38,000.

HDB rents will increase up to eight per cent by 2024.

The rental price of condos fell for a 5th consecutive month in December last year, wiping out any growth that had been seen during the 1st half of the 2023. HDB, the Housing and Development Board, has continued to record growth both in rents and leasing volume.

Flash data from SRX &, released on Thursday, Jan. 18, showed a 0.5 % decline in condo rental rates from the prior month

However, overall condo rentals were still 2,6 per cent higher than the December 2022 levels. Rents were higher in Outside Central Regions (OCR) compared to Rest of Central Regions (RCR), by 4.4% versus 2.6%. Core Central Region’s rents increased by 0.9% on an annual basis.

Although the HDB rental market has tightened with a decrease in the number flats with a minimum occupation period, she is not expecting a rent increase as affordability remains a major concern for tenants.

HDB is expected to stabilize its rental prices in 2024. This will result in a modest gain of 1 – 3 percent.

Expect HDB to lower its rental rates in the beginning of 2024. HDB flat rentals will be affected by the expected decline of rental prices of private properties in 2024.

error: Content is protected !!
Call for Showflat Appt.