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.
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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