HDB, condo rental volumes are up: 99.co, SRX

The volume of private rentals increased by 6.2% in January 2020, from 5.665 units the previous month.

The January figure for this year is down 4.6 % on a yearly basis. It’s also 13 % lower than it was five years ago.

In terms of region, the OCR was responsible for 38.5% or the vast majority, while the RCR had 32.6%, and the CCR 28.8%.

After the holiday season, many tenants signed new contracts or renewed those they already had at the beginning 2020. The Chinese New Year holidays caused a decrease in condo rental numbers for February. Typically, landlords do not make their properties available for viewing.

Housing and Development Board, or HDB, and condominium rents each showed a decline of 0.7% from December 20,23.

SRX & 99.co flash data released Tuesday (Feb. 20) revealed that the Core Central Region accounted for the sole area with rental growth of 0.4 percent, while the Rents of the Rest of the Central Region fell by 1.6 percent and the Outside Central Region experienced a 1percent decline.

The OCR saw a rental increase of 2,4%. Rentals dropped 0.7 percent on the year for the CCR and 0.6% for the RCR.

This is the sixth month in a row that condo rental rates have decreased. Prices are now down 4.3% since their peak last year.

Renting out your unit can be a challenge for landlords. Rents are falling, and not just because of higher mortgages or increased property taxes. Some landlords would prefer to make a compromise on the rent than have their unit vacant for a prolonged period of time.

The opportunity may be taken to negotiate for a reduced rental rate within the condominium rental market.

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In his opinion, the HDB rent decline may only be a temporary phenomenon as the volume increases indicate that demand is still strong. HDB rental markets continue to draw tenants looking for low-cost accommodation. The HDB rental market may become more affordable if condo rents drop further. The HDB flats tenants may then feel tempted to move into a condo. HDB rentals may then consolidate or move to the south.

She doesn’t think that it is likely that HDB rent will rise as a result of the Singapore Government providing a Parenthood Provisional Housing Scheme. She added that, even if there were a price increase, it was likely to affect smaller HDB homes as most couples leasing larger HDB houses would be concerned about cost. The effect of the vouchers will also depend on how many people receive them, as well as the amount.

HDB rentals fell as well by 0.7% from December levels 2023. The decline was seen in both mature estates and non-mature ones, where rents decreased by 1.2% and 0.3% respectively.

HDB rents for January remained stable on a monthly basis for four room units. Three-room rentals, however, fell by 1,2% while executive flat rents declined by 3%. Five-room rentals dipped 0.6 per cent. Overall, year-on-year rents were up 8.6 percent from January levels 2023.

All room types have seen record rents, beginning with five-room apartments which saw a 9.2 % increase year-on-year. Following this were four-room apartments (8.7%), Executive units (8.2%), and Three-roomers.

Volumes of HDB flats were estimated to have increased by 4.6 per cent from December 2023 to 3,024 in January 2020. This represents an increase of 5.3 per percent from January 2023’s levels, and 1.4 percentage points above the five-year average for the month.

HDB rentals are divided by room type. 38.4 % of HDB rentals are for four-room flats.

The percentage of four-room apartment rentals has increased in comparison to December 2023 where this flat type contributed 36.2 per cent to volumes.

Singapore’s economy is experiencing more retrenchments. As a result, some tenants have decided to be careful and rent smaller apartments that are more affordable.

The overall rental market has seen a rise in both HDB and condo rental units. Perhaps tenants have become more interested after noticing a substantial rental price reduction compared to a year ago.


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