Rent for HDB increase 0.4%, while rent for condo drop 0.4%
Demand for homes has remained steady, and certain tenants continue to opt for HDB flats, which continue to offer the most affordable housing option on the market.
The declining rental prices will make Singapore more attractive for multinational companies which will draw more expats to work in Singapore.
Condo rental volume inched up 3.1 percent to an estimated 5,874 units during April. The amount of units rented in April grew by 4.4 percent year-on-year, but still a mere six percent below the five-year average rental rate.
Some landlords have decided to reduce their rents and let their condos rent quickly to avoid having their homes vacant.
In April, renters picked smaller apartments to cut rental costs in an uncertain economic climate.
HDB rents, on the other hand, rose by 0.3 percent in April. This is a lesser rise than the 0.6 percent rise that occurred in March.
There was a small number of units available for rent as fewer flats reached their five-year occupancy minimum from 2022 onwards, which drove rents up.
Rents for flats in estates that are mature were up 0.7 percent, whereas those in non-mature estates slid 0.3 percent.
The rents for five-room apartments fell by 0.4% in April. Other flat types like executive apartments, as well as three and four-room flats, also saw minor rises.
HDB rents have increased by 7.6 percent over April 2023. This is the case for all flat types in mature and non-mature estates.
The demand for rentals of HDB flats to remain robust with the support of local residents and foreign students and blue-collar workers.
A greater number of HDB flats were leased out in April, with rents rising 9.2 per cent to around 2,941 units.
However, rental rates for the HDB market fell 9.5 percent year over last year and 9.7 percent less than the five-year average for April.
The gap in rental rates between HDB flats in estates that aren’t yet mature, and condominium units in the suburbs is continuing to narrow.
For example, the rent for a three-bedroom condo unit in Sengkang varied from $3,700 to $4,500. Comparatively, the median rent for HDB executive or five-room flats at the estate ranged between $3,350 to $3,600.
Renting a condo with a price that is a bit higher may be a better deal for tenants
Rents for condos will fall further in the second quarter of 2024 amid inflation that is high, and HDB rents to increase at a slower rate due to tenants refusing higher rents.
