Singapore rental market in October 2024 highlighted a dynamic landscape shaped by supply constraints, tenant preferences, and shifting price pressures in the condo and HDB segments. While the HDB rental market continues to experience upward momentum in rental prices due to limited supply, the private condo rental market presented signs of stabilisation despite declining rental volumes.
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Let’s dive deeper into the rental market in October 2024!
Condo rental market: Modest price gains amid declining volumes
The condo rental market recorded a modest 0.5% increase in rental prices compared to September 2024. This growth was supported by rental gains in the Core Central Region (CCR) and the Rest of Central Region (RCR), which rose by 0.5% and 0.8%, respectively. Meanwhile, rental prices in the Outside Central Region (OCR) remained unchanged.
Despite this modest increase, year-on-year condo rental prices were down by 2.8%, with declines of 3.9%, 3.3%, and 2.3% in the CCR, RCR, and OCR, respectively. This dynamic reflects a stabilisation trend in the condo rental market after a period of fluctuations.
As for the rental volumes, the condo segment faced a 7.5% decline, with 5,712 units rented in October 2024 compared to 6,172 units in September. On a year-on-year basis, however, rental volumes were 5.3% higher, suggesting that demand for condos remains relatively robust despite monthly fluctuations. Regional distribution of rental transactions showed the OCR accounting for 34.8% of the total volume, followed by the RCR at 33% and the CCR at 32.2%.
This stabilisation in condo rental prices, coupled with falling rental volumes, likely stems from evolving tenant preferences and lower borrowing costs. This trend may continue to shape the condo market, leading to further balancing in prices and demand.
Additional reading: Condo and HDB rental volumes continue to drop amid stabilisation of condo rents in September 2024
HDB rental market: Upward price pressure driven by limited supply
HDB rental market also displayed price growth in October, with rental prices increasing by 0.5% compared to the previous month. This rise was primarily driven by a 0.9% increase in Mature Estate rental prices, while Non-Mature Estate saw a slight decrease of 0.2%. Across flat types, rental prices for 3-room, 5-room, and Executive flats rose by 1.2%, 0.7%, and 0.8%, respectively, while 4-room flats experienced a minor dip of 0.3%.
Year-on-year, HDB rental prices increased by 4.6%. Rental prices in Mature Estates climbed by 5.6%, while Non-Mature Estates saw a 3.5% rise. All flat types recorded rental price growth, with Executive flats leading the way with a 6.4% increase.
The upward pressure on HDB rental prices is closely tied to a constrained supply of available flats, particularly due to a limited number of units reaching their Minimum Occupation Period (MOP). This supply crunch is likely to persist and may continue pushing rental prices higher, with potential increases of 2–3% through the end of 2024.
Rental volumes for HDB flats rose by 2.9% month-on-month. The record showed an estimated 2,398 units rented in October, up from 2,331 in September. However, year-on-year rental volumes fell by 16.1%, reflecting the ongoing supply challenges. Of the total transactions, 33.1% involved 3-room flats, 38.4% were 4-room flats, 22.2% were 5-room flats, and 6.3% were Executive flats. Demand for mid-sized and larger flats remains strong among tenants seeking more space.
Additional reading: Condo resale prices edge up as buyers return, volumes dip amid competition from new launches in September 2024
Overall rental market outlook in October 2024
The contrasting performances of the condo and HDB rental markets underscore the diversity of tenant preferences and economic realities this October. While the HDB segment continues to attract demand due to affordability and larger flat sizes, the condo rental market offers stabilising prices and flexible options.
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Both segments may benefit from improving business sentiment and employment growth, driven in part by lower borrowing costs. However, for the time being, HDB rentals remain a sought-after choice for most, while the private market’s stabilising rents offer an appealing alternative for other groups of renters seeking a different living experience.
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What do you think about the rental market in October 2024? Share your thoughts in the comments section below or on our Facebook page.
About Ananda Bayu
Ananda has been wrangling Singapore's complex real estate trends into readable bites since 2020. She writes like she's explaining it to a friend over kopi — because who has time for jargon? When off the clock, she’s probably doom-scrolling through cat memes on X, convincing herself it's the highest tier of "creative inspiration".
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