Rents for HDB flats and private condominiums rose in September, and analysts note that the rental market may face even greater pressure following the latest round of cooling measures.
According to data released on October 12 by property portals 99.co and SRX, HDB rents increased by 3.2% in September, up from a 2.4% rise in August. Rents for all flat types in both mature and non-mature estates are on the rise.
Condominium rents rose by 3.3% last month, compared to 3.2% the previous month. The fastest increase was in the city fringe, at 3.9%.
This marks the 21st consecutive month of rising condo rents and the 27th consecutive month for HDB rents.
Leo Kwek, a senior local real estate agent from Anjia SG, said that despite the continuous rise in rents, demand remains strong as it is still a landlord’s market.
Leo said: “With few housing options available, many tenants have agreed to pay higher rents. Even older properties and less conveniently located homes are in demand and can command quite attractive rental rates.”
Compared to the same period last September, condo rents have soared by 30.9%, with rents in the city fringe increasing by 31.8%.
Compared to last September, HDB rents have increased by 24.7% year-on-year, with five-room flat rents rising by 27.9%.
Leo stated that for both markets to achieve double-digit growth in such a short period is quite significant.
Meanwhile, the number of condo units rented out also grew, increasing by 9.8% month-on-month to 4,760 units last month, reversing the decline seen in August.
The number of units rented out was up 1.9% year-on-year and 5.6% higher than the five-year average for the same period in September.
The number of HDB flats rented out last month increased slightly, rising 0.3% month-on-month to about 1,809 units, compared to 1,803 units in August.
Rental volume in the HDB market was up 5.1% year-on-year and 0.9% higher than the five-year average for September.
Leo said that the two projects launched last month—Lentor Modern in Ang Mo Kio and Sky Eden@Bedok—both recorded strong sales, leading to an increase in demand for rental housing.
Leo said: “Some HDB upgraders may choose to sell their flats and opt to rent temporarily so they don’t have to pay the ABSD (Additional Buyer’s Stamp Duty).”
Related Articles:
HDB Rental Prices
HDB Rental Volume
Leo added that employers are hiring more foreign talent given the tight labor market, as indicated by the falling unemployment rate.
Leo said: “At the same time, companies are also expanding their recruitment efforts to fill the talent gap.”
Leo stated that although an estimated 31,000+ HDB units will reach their five-year Minimum Occupation Period (MOP) this year, these owners may choose to hold off and wait for the situation to become clearer before making their next move.
“This could exacerbate the supply crunch in the HDB rental market, with demand set to peak,” Leo added.
Related Articles:
Condo Rental Prices
Related Articles:
Condo Rental Volume
Leo expects rents to rise further as landlords are already passing on additional costs, such as rising interest rates, to tenants.
“With the upcoming GST (Goods and Services Tax) increase and higher property taxes next year, we expect rents to climb further,” Leo added.
Leo said that rents are projected to increase by 10% in the fourth quarter of 2022 and this trend will likely extend into 2023 with the implementation of the cooling measures.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
