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Singapore Rental Market in Chaos as Prices Soar by 24% in 1-year

• Posted on August 15, 2023
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By Ritesh Singh

 

Housing Board(HDB) flat rents in Singapore rose for the 37th consecutive month, up 2% in July 2023 following a 1.4% increase in June.

• HDB and condo rents in Singapore continued to rise in July, indicating ongoing demand in the rental market.
• The increase in rental prices was observed across various housing types and locations, suggesting a broad-based trend.
• Rental prices have maintained an upward trajectory despite more units being leased in July due to limited supply and increased demand for housing

 

 

According to data released by the Singapore Real Estate Exchange (SRX) on August 30th, HDB flat rental prices increased by 2% in July. Overall, HDB rentals witnessed a year-on-year increase of 24.1%, with rates for all room types in both mature and non-mature estates rising by more than 20%. Specifically, between July 2022 and July 2023, rental rates in mature estates rose by 23.2%, and in non-mature estates, they increased by 25.2%.

Year-on-year, the most significant increase in rental rates occurred in executive apartments, which saw a rise of 30.2%. Smaller flats experienced smaller increases, with three-room flat rates increasing by 21.1%, four-room flats by 24.0%, and five-room flats by 26.2% from the previous year.

However, it's worth noting that not only have rental rates increased, but rental volumes have also surged. Rental volumes in Singapore increased by 25.3% in July 2023 compared to June 2023. An estimated 7,282 units were rented in July, up from 5,810 units in June.

This increase in HBD rents and volumes was a signal that tenants were moving to more affordable housing options due to the looming economic uncertainty and rising levels of layoffs in the first half of 2023.

 

July 2022- 2023 Rental Prices Rise in Condo and HBD Market

 

 

 

Regarding month-on-month changes for July 2023, rentals in mature estates increased by 2.1 %, while in non-mature estates, they rose by 2%. Within the categories of three, four, and five-room flats and executive apartments, the month-on-month increases were 1.4%, 2.4%, 1.9%, and 4.0% respectively.

Condominium rentals showed a slightly better performance, with rates increasing by 1.1% compared to the previous month. Year-on-year, overall condominium rents rose by 21.6%.

In June, 2,990 HDB flats were rented, while in July, an estimated 3,320 HDB flats were rented out, representing an 11 % month-on-month increase.

The most preferred choice among renters was four-room flats (37.8 %), followed by three-room flats (32 %). Meanwhile, 24.7 % of renters opted for five-room flats, and 5.4% chose Executive apartments. Between July 2022 and July 2023, rental volumes increased by 9.5%.

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