by OrangeTee & Tie Pte Ltd.

Condo, HDB rental prices hit record highs in April; fewer units leased

SRX Rental Data

Singapore, 11 May 2022

In April, rental prices for Housing Board flats and private apartments continued to grow, reaching new highs in both sectors, despite lower leasing volumes.

According to data provided on Wednesday by real estate websites 99.co and SRX, condominium rentals last month increased by 1.8 percent over the previous high in January 2013, while HDB rents increased by a record amount year on year (May 11). Overall, condo rentals increased by 2.3 percent, compared to 2.9 percent in March, while HDB rents increased by 1.9 percent, compared to 1.4 percent the month before.

OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that rents rose at a quicker pace in March and April, compared with April to December 2021. "Rents have been escalating over the past few months, and market resistance could be setting in. More tenants are renting units together to share costs," she said. This could push some Malaysians to not renew their leases and move back across the Causeway, opting instead to travel to Singapore regularly, Ms Sun added.

Last month, rental volume in the condominium market fell by 21% to an estimated 3,551 units, down from 4,497 in March. While fewer HDB flats were rented, with an estimated 1,382 units leased compared to 1,743 units the month before. 

As rental stock was low, fewer units were leased and many were snapped up quickly, Ms Sun added. "Some tenants booked units without viewing them, as competition is stiff and stock is lacking. To secure units quickly, some were transacted above the asking rents," she said.

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