Rents for condos drop 0.4% in Apr & HDB rents increase 0.3 %
There was a shortage of rentals available as fewer flats reached their five-year minimum occupation period from 2022 onwards, which drove rents higher.
The need for HDB flats has remained strong and many tenants continue to choose them. They are still the most cost-effective option available on the market.
The rents for apartments in mature estates increased by 0.7 percent, whereas those in non-mature estates slid 0.3 per cent.
The lower rental costs can make Singapore more appealing for multinational companies, which in turn will bring in more expats to work in Singapore.
The amount of condos rented in April increased by 3.1 percent to 5,874 units. While the number of units that were leased increased by 4.4 percent year over last year, it was six percent lower than the average of five years for April.
Some landlords have chosen to compromise their prices and lease their condos fast in order to avoid having their homes vacant.
In April, renters picked smaller condos to reduce the cost of renting in a volatile economy.
HDB rents, on other hand, rose by 0.3 percent in April. This is a smaller increase than the 0.6 percent increase that took place in March.
The rents for five-room apartments fell by 0.4% in April. Other flat types like three- and four-room flats, and executive apartments – also recorded modest increase.
Comparatively to April 2023, HDB rents increased by 7.6 percent, increasing over all flats, both in mature and non-mature estates.
Rental demand for HDB flats is expected to grow with the support of local residents and blue-collar workers and students from abroad.
A greater number of HDB flats were leased out in April, increasing 9.2 percent to an estimated 2,941 units.
However, rental volumes in the HDB market were down 9.5 per cent year on year, and were 9.7 per cent lower than the five-year average for April.
The gap in rental between HDB flats in estates that are not mature and condo units in the suburbs has continued to narrow.
The rent for a condo that has three bedrooms in Sengkang For instance was between $3,700 and $4,500. In comparison, median rents for HDB five-room or executive flats within the estate ranged from $3,350 to $3,600.
Tenants might find greater value in renting a condo with slightly higher rents
Rents for condos will fall further during the second half of 2024 amid inflation that is high, and HDB rents to increase at a slower pace due to tenants resisting higher rents.
