HDB rentals hit new highs in February. SRX, 99.co
Although experts predict that the price of condos will peak in the first half 2024 and then stabilize, the HDB housing prices could go up by 8 per cent in one year. This would be due to tenants seeking more affordable housing alternatives amid a decrease in flats achieving the minimum period of occupation (MOP).
The limited supply may keep HDB rentals high until the private market rents start to drop and become competitive. SINGAPORE’s private rental markets remained soft in the second half of February 2024. Housing and Development Board rents, however, rose and reached a record high. SRX & 99.co published their latest flash estimates on Tuesday (19 Mar) and found that condominium rental prices had fallen by 1% from January.
99.co’s chief data officer and analytics officer, noted that condominium rents have fallen to their lowest levels since January 20,23. They attributed this downward trend to the glut of condos that has been present in the market since last winter. Many condominiums obtained temporary occupancy permits last year. This resulted in the rental of more new homes. Increased competition in certain areas may have led to lower rental prices.
As private rents continue adjusting, some tenants may decide to switch from HDB to private flats over the coming months. This was 11.9% lower than the monthly average over the past five years. 35.8 percent of all private rentals come from the OCR. 32.8 percent are from the RCR. And 31.4 percent from the CCR. The condo market is experiencing difficulties due to the increasing number of people retrenchment, and an abundance of rental homes.
Some landlords have become more flexible in negotiating rental terms with tenants, compared to last year.
Rentals of HDB units grew by 1% in February over the previous period, reaching new highs. However, volumes dropped 19.1%, falling to 2,448 apartments rented from 3,027 flats in January. Rents for HDB units are still high, so renters are looking for ways to offset inflation.
As the Chinese New Year festivities were the primary cause for the decline of condo and HDB rentals in February, he predicts that the volumes for both the markets will increase in the next quarter. HDB flat rents in mature estates were up by 1.3 % month on month. However, non-mature Estate rents only increased by 0.5 %.
All room categories saw rent increases month over month. Executive units (2,6%) and four-roomers were the most notable. Rents on three-room HDB apartments increased by 0.4 percentage points, while rents on five-room HDB apartments rose by 0.3 percentage points.
HDB’s overall housing rental prices are up 8.4 % on the year.
On an annual comparison, rents of all types increased. Executive rents rose 9 per cent; rents of four-roomers rose by 8 per cent; and rents of five-roomers grew by 8.1percent. The rents for three room units increased by 7.8 %.
The monthly rental volume in February is down by 8.4% year-on-year and 6.9% from the five year average.
According to the type of flat, 37.3 percent of the total monthly volumes were generated by HDB four-room flats and 31.7 percent from HDB three-roomers. The month’s rental volume was dominated by five-room unit rentals, which accounted 25.4 percent. Executive units made up 5.7 percent.
As a result, more tenants may have moved to HDB executive flats.
n February 2024, rents in the Core Central Region decreased by 1.6%; those in the Rest of the Central Region declined by 0.5%, and rents outside the Central Region experienced a 6.6% decline.
Rents across the board fell 4 per cent in one year. CCR, RCR, and OCR rents all declined. Rents in condos fell by 7.7% on an annual basis and 21.0% from the previous February.
