Residential property rents hit a high in April, surpassing the last peak in 2013, and are expected to continue rising as Singapore reopens and foreigners return for work.
Condo rents rose by 2.3% in April after 16 consecutive months of increases, and were 1.8% higher than the previous peak in January 2013. According to data released by SRX Property and 99.co on Wednesday (May 11), rents were up 15.1% year-on-year compared to April 2021.
Rents for Housing & Development Board (HDB) flats showed a similar dynamic, continuing their rise for the 22nd consecutive month. HDB rents increased by 1.9% in April, a 14.3% year-on-year increase. The last peak for HDB rents was in August 2013.
However, transaction volumes slipped last month. There were 3,551 condo units rented out in April, a 21% decrease from the 4,497 units in March. This is 28.9% lower than the same period last year and 23.2% below the 5-year average for April.
Leasing activity in the HDB market also decreased. In April 2022, rental volume fell by 20.7% month-on-month and 24.5% year-on-year to 1,382 units. This is 28% lower than the 5-year average volume for April.
Market observers noted that the number of available units for rent is decreasing, a situation intensified by construction delays for new HDB flats and condominiums.
“Due to fierce competition and insufficient stock, some tenants are booking units without even viewing them. To secure a unit quickly, some units are transacted above the asking price,” said local veteran real estate agent Leo Kwek.
Nevertheless, “with rents climbing over the past few months, market resistance may be building,” said Mr. Kwek. “More tenants are renting together to share costs. Some Malaysians have decided not to renew their leases, opting instead to cross the Causeway more frequently, which is a cheaper option for these workers.”
With Singapore opening its travel borders, property consultants expect a shift in the rental market.
Leo Kwek noted that despite the implementation of the Vaccinated Travel Framework (VTF), tenants may maintain their leases due to uncertainty surrounding the coronavirus situation. However, he expects more professionals and skilled workers to enter Singapore as travel measures stabilize.
“Interestingly, those living in Hong Kong have also been contributing to the rent increase, as they look to move to Singapore,” he said.
Leo Kwek pointed out that expatriates are also more inclined to bring their families when relocating to Singapore, driving up demand for larger rental units, especially in the Core Central Region (CCR) and the Rest of Central Region (RCR).
Mr. Kwek added that some Malaysian workers have also decided they would rather live in Singapore than commute across the border daily, which will further push up rents.
Despite this, many Malaysians are renewing their leases for short periods, adopting a wait-and-see approach as they are unsure if the border will remain open, he noted.
“This supported rents in April, but once the situation stabilizes, some Malaysians may eventually give up their leases,” he said.
While the reopening of borders will lead to some returning to their home countries, Anjia SG expects demand to increase overall, supporting further rental growth. Private residential rents are likely to grow by 6% to 9% in 2022, with rental growth potentially slowing in 2023 as more supply is completed.
Leo Kwek also predicts that the HDB and condo rental indices will continue to rise this year, with an 8% to 12% increase for the full year of 2022.
In April, private condo rents in the Core Central Region (CCR) saw the highest monthly increase at 3.1%, followed by 2.1% in the Outside Central Region (OCR) and 1.8% in the Rest of Central Region (RCR). Compared to the same period last year, CCR, RCR, and OCR saw increases of 14%, 14.4%, and 16.5% respectively.
District 25, which primarily includes Kranji and Woodlands, had the highest median rent growth. The median rent in this district grew by a staggering 43.8% year-on-year, 15.5 percentage points higher than the 28.3% increase in the second-highest district, District 17, where Changi International Airport is located. District 13, covering MacPherson, Potong Pasir, and Braddell, and District 25 saw the largest month-on-month increase in median rent at 15%. District 11 (Novena, Newton, and Thomson) had a monthly growth of 12.5%.
Related Articles:
In contrast, District 3 (Alexandra, Commonwealth, Tiong Bahru, and Queenstown) and District 4 (Harbourfront and Telok Blangah) experienced the largest monthly median rent decreases, falling by about 7.1% and 6.3% respectively.
According to data from 99.co and SRX Property, median data was not calculated for District 6 (City Hall and Clarke Quay) and District 24 (Lim Chu Kang and Tengah) due to a lack of transactions. Excluding these two districts, all districts showed a year-on-year increase in median rent. Districts 1, 2, 13, 16, 17, 25, and 26 all saw growth rates exceeding 20%, while Districts 3, 4, and 10 (Bukit Timah, Holland Village, and Tanglin) all had growth rates below 5%.
In April, approximately 38.1% of total condo rental volume came from the OCR, followed by 32% from the RCR and 29.9% from the CCR.
Leo Kwek added that rents for 3-bedroom and 4-bedroom units are rising faster than for smaller units.
“This may be due to the demand for larger spaces from the work-from-home trend, and higher demand from families who have sold their homes and are waiting for their new homes to be built,” he said.
Singapore Condo Rental Prices by District
| District | Median Rent (SGD) | Median Rent (SGD) | Median Rent (SGD) | Monthly Change | Yearly Change |
|---|---|---|---|---|---|
| April 2021 | March 2022 | April 2022 | |||
| 1 | 4,000 | 4,725 | 5,100 | 7.9% | 27.5% |
| 2 | 3,400 | 4,000 | 4,300 | 7.5% | 26.5% |
| 3 | 3,850 | 4,200 | 3,900 | – 7.1% | 1.3% |
| 4 | 5,800 | 6,400 | 6,000 | – 6.3% | 3.4% |
| 5 | 3,400 | 3,700 | 3,900 | 5.4% | 14.7% |
| 7 | 3,650 | 3,850 | 4,000 | 3.9% | 9.6% |
| 8 | 3,000 | 3,500 | 3,400 | – 2.9% | 13.3% |
| 9 | 4,500 | 4,950 | 5,200 | 5.1% | 15.6% |
| 10 | 4,800 | 5,000 | 5,000 | 0% | 4.2% |
| 11 | 3,800 | 4,000 | 4,500 | 12.5% | 18.4% |
| 12 | 2,700 | 2,950 | 3,100 | 5.1% | 14.8% |
| 13 | 2,800 | 3,000 | 3,450 | 15% | 23.2% |
| 14 | 2,500 | 2,900 | 2,800 | – 3.4% | 12% |
| 15 | 3,300 | 3,675 | 3,800 | 3.4% | 15.2% |
| 16 | 2,700 | 3,100 | 3,250 | 4.8% | 20.4% |
| 17 | 2,300 | 2,700 | 2,950 | 9.3% | 28.3% |
| 18 | 2,600 | 3,000 | 2,950 | – 1.7% | 13.5% |
| 19 | 2,550 | 3,000 | 3,000 | 0% | 17.6% |
| 20 | 3,200 | 3,475 | 3,800 | 9.4% | 18.8% |
| 21 | 3,100 | 3,300 | 3,500 | 6.1% | 12.9% |
| 22 | 3,000 | 3,400 | 3,250 | – 4.4% | 8.3% |
| 23 | 2,700 | 2,800 | 3,000 | 7.1% | 11.1% |
| 25 | 2,400 | 3,000 | 3,450 | 15% | 43.8% |
| 26 | 2,425 | 2,850 | 3,000 | 5.3% | 23.7% |
| 27 | 2,475 | 2,900 | 2,775 | – 4.3% | 12.1% |
| 28 | 2,300 | 2,550 | 2,600 | 2% | 13% |
Note: Districts 6 and 24 were excluded due to no transactions
Source: 99.co, SRX
In the HDB market, rents for flats in mature estates climbed by 2.2% in April, while rents for those in non-mature estates rose by 1.7%. Compared to last year, rents for flats in mature and non-mature estates increased by 14.2% and 14.4% respectively.
Rents for all HDB flat types increased in April. Rents for 3-room flats rose by 1.4%, 4-room and 5-room flats by 2.3% each, while executive flat rents increased by 1.2%.
On a yearly basis, rents for 3-room, 4-room, 5-room, and executive flats grew by 13.2%, 14.7%, 15.1%, and 10.6% respectively.
Choa Chu Kang saw the highest increase in median rent, up 11.9% from March and 23.7% from a year ago.
Bukit Timah, Queenstown, and Bukit Panjang also saw significant monthly increases of 11.3%, 9.7%, and 8.3% respectively. Meanwhile, median rents in Ang Mo Kio and Yishun fell by 2.9% and 2.3% respectively.
Compared to the same period last year, HDB flats in Clementi (20%), Bukit Panjang (18.2%), and Sembawang (17.9%) saw the largest increases, while Ang Mo Kio (2%) and Serangoon (4.5%) had the smallest gains. There was no monthly or annual change in median rent for the Central area.
By flat type, 37.4% of the total volume in April 2022 came from 3-room flats, 36.7% from 4-room flats, 21.9% from 5-room flats, and 4.1% from executive flats.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
