Singapore, 09 Apr 2023 Median rents across Housing Board towns in January and February were at least 20 per cent higher than in the same period last year, estimates by OrangeTee & Tie show.
Overall, HDB rents shot up 27.7 per cent in February compared with a year earlier – a rate of increase not seen in 15 years. January recorded a similar rise of 27.6 per cent.
OrangeTee analysed contracts across two months in order to ensure sufficient rental data for each HDB town.
Ms Sun sees other factors contributing to higher rents, with one being the new 15-month wait-out period for private home owners buying HDB resale flats. This change, announced last September as part of a round of property cooling measures, led to more people having to rent in the interim.
Ms Sun also reckons that landlords took the opportunity to increase rents in anticipation of more interest rate hikes, which will translate to higher mortgage repayments. Some have also raised rents in view of higher property taxes payable this year and the burgeoning maintenance fees of condos.
HDB rentals to remain elevated?
There will be fewer flats reaching MOP this year. According to OrangeTee’s analysis, the number will fall significantly over the next three years – down 50 per cent from 31,325 in 2022 to 15,748 units this year, and then a 17 per cent fall to 13,093 in 2024 and a 37 per cent plunge to 8,234 units in 2025.