HDB rental prices at new high; Condo rental lowest since Jan 2023

In our previous property market update, we discussed the stabilisation of HDB and condo rental prices. However, just a month later, significant shifts have been observed. 

HDB rental prices have soared to a new high, contrasting with the ongoing decline in condo rental rates.

The bigger picture

According to Mr Luqman Hakim, Chief Data & Analytics Officer at 99.co, condo rental prices experienced a notable downturn in February 2024, marking the lowest point since January 2023. 

This decline, persisting for 13 consecutive months, is attributed to an oversupply of properties flooding the market in 2023. The surplus has exerted downward pressure on rental prices, benefiting tenants seeking more affordable housing options.

Conversely, HDB rental prices have surged to unprecedented levels in February 2024, following a brief dip the previous month. 

This upward trend can be attributed to heightened demand from renters seeking respite from inflationary pressures. Condominium rentals, being comparatively pricey, have driven more tenants towards HDB units, thus bolstering their rental prices.

Rental volumes for both HDB and condo properties witnessed a decline in February, primarily due to the Chinese New Year festivities. However, it is anticipated that rental activities will regain momentum in the second quarter of 2024.

Condo rental market breakdown

In February 2024, rents for condominiums experienced a 1.0% decrease from January 2024. 

Rental rates in Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR) declined by 1.6%, 0.5%, and 0.6%, respectively. 

On a year-on-year basis, overall condo rents exhibited a 4% decrease compared to February 2023.

Rental volumes witnessed a significant decline of 21.0% month-on-month, with an estimated 4,715 units rented in February 2024, down from 6,017 units in January 2024. 

Year-on-year, rental volumes decreased by 7.7%. Notably, rental volumes were 11.9% lower than the 5-year average volume for the month of February. 

Region-wise, OCR accounted for 35.8% of total rental volumes, followed by RCR at 32.8% and CCR at 31.4%.

HDB rental market breakdown

In February 2024, HDB rents experienced a notable increase of 1.0% from January 2024. 

Both mature and non-mature estates recorded rent increases of 1.3% and 0.5%, respectively. Across all room types, including 3-room, 4-room, 5-room, and Executive flats, rent witnessed month-on-month growth.

Year-on-year, HDB rents displayed a substantial increase of 8.4% from February 2023. Mature estates and non-mature estates witnessed rent hikes of 7.2% and 9.5%, respectively. 

Volume-wise, there was a decrease of 19.1% month-on-month, with an estimated 2448 HDB flats rented in February 2024, down from 3027 units in January 2024. 

Compared to February 2023, rental volumes witnessed an 8.4% decline.

This version of article written by Sophiyanah David and first appeared at 99.co.