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In June 2024, the rental market for both condominiums and HDB flats showed specific trends in terms of price movement and rental volume. The overall condo rental market exhibited stability, with regional variations. In contrast, HDB rentals experienced a slight increase, indicating sustained demand.
The article examines the monthly and year-on-year fluctuations in rents and rental volumes across various regions and property types, providing a comprehensive summary of Singapore’s current rental market.
Read May 2024’s rental flash report: Slight dip in condo rents, yearly growth for HDBs
Condo rental market
Condo rental price trend
The rental market displayed minimal changes, with rents overall staying the same. Rents in the Core Central Region (CCR) decreased by 1.2%, while rents in the Rest of Central Region (RCR) decreased by 0.3% compared to May 2024. In contrast, the Outside Central Region (OCR) experienced a slight rent increase of 0.8%.
Read this: Are integrated condos really worth their price premium?
In the year-on-year comparison, the rental market declined, with rents dropping by 4.7% from June 2023. Specifically, the CCR showed a 5.7% decrease in rents, the RCR had a 4.6% drop, and the OCR recorded a 3.9% reduction in rents over the same period.
Condo rental volume trend
Rental volumes experienced a notable increase, with a 16.8% month-on-month rise. An estimated 6,020 units were rented in June, as opposed to 5,155 units in May 2024. This surge in activity indicates a stronger rental market than the previous month.
Rental volumes increased by 3.5% year over year, indicating consistent growth in the market. However, the June volumes remained 4.2% lower than the five-year average, suggesting a relatively subdued performance within a broader historical context.
The rental transaction volumes were distributed as follows across different regions: 37.5% were in the Outside Central Region (OCR), 32.9% in the Rest of the Central Region (RCR), and 29.6% in the Core Central Region (CCR). This indicates a steady demand for rentals across various regions, with the OCR leading in rental activity.
HDB rental market
HDB rental price trend
The latest data on HDB rents shows a 0.5% increase compared to May 2024. This increase is primarily driven by Mature Estates, where rents increased by 1.2%, while Non-Mature Estates experienced a slight rent decline by 0.2%. Looking at different room types, rents for 3-, 4-, and Executive flats rose by 1.2%, 0.1%, and 1.6%, respectively, whereas rents for 5-room flats decreased by 0.6%.
Overall, HDB rents increased significantly by 5.5% from June 2023. Mature and non-Mature Estates exhibited similar upward trends, with rents rising by 5.7% and 5.2%, respectively. When examining by room type, all categories showed rent increases over the year: 3-room flats by 5.2%, 4-room flats by 5%, 5-room flats by 5.8%, and Executive flats by 7.3%.
HDB rental volume trend
The volume of rented HDB flats increased by 2.7% month-on-month, with an estimated 2,629 units rented compared to 2,560 in May 2024. This indicates a slight uptick in rental activity over the past month.
Read this: Analysis: Will HDB rental fees decrease in 2024?
On a year-on-year basis, rental volumes experienced a significant decline, decreasing by 13.5% from June 2023. Additionally, the rental volumes for June 2024 were 12.4% lower than the five-year average for the month, suggesting a broader trend of reduced rental transactions.
The distribution of HDB flat rentals by room type was as follows: 3 Room flats accounted for 33.9% of the total rentals, 4 Room flats made up 37.2%, 5 Room flats contributed 23.5%, and Executive flats represented 5.5%. This distribution illustrates the varying demand across different types of HDB flats.
Conclusion
According to data insights, historically, June typically experiences a rebound in rental volumes after a decline in May. This pattern held this year, with a 16.8% increase in condo rental volumes. However, despite this increase, condo rental prices seem to have reached a stable point. Further price decreases are possible due to growing supply, sustained high interest rates, and ongoing economic uncertainties.
HDB rentals have reached a new peak with a 0.5% price rise, while rental volumes have remained relatively stable. In contrast to the condo market, HDB rental prices are expected to keep increasing due to budget-conscious renters seeking more economical choices. As economic conditions change, the rental market dynamics for condos and HDB flats will adjust to reflect tenants’ shifting preferences and financial capacities.
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Disclaimer: This information is intended solely for general informational purposes. 99.co makes no claims or guarantees regarding the information’s accuracy, completeness, or suitability, including, but not limited to, any assertion or assurance regarding its appropriateness for any specific purpose, to the maximum extent allowed by law. Despite all efforts to ensure that the information presented in this article is current, reliable, and comprehensive at the time of publication, it should not be used as the sole basis for making financial, investment, real estate, or legal decisions. Furthermore, this information is not a replacement for professional advice tailored to your unique personal circumstances, and we disclaim any responsibility for decisions made using this information.
About Azhann Rosmin
Azhann Rosmin is a writer who has 6 years of professional forte. He specialises in writing about real estate and lifestyle topics. His coverage mostly focuses on HDBs, condos, BTOs, and landed houses while also favouring topics of food, nightlife, and technology. He has worked in multiple writing positions that include cryptocurrency, fintech, e-commerce, fashion, and cosmetics. Azhann graduated with a bachelor's degree in Applied Linguistics and also writes poetry.
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