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.
Read more: Analysis: Will HDB rental fees decrease in 2024?
Condo rental market breakdown
Condo rental price trends
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.
Rather look at condos that will MOP this year? Have a read here: Upcoming Executive Condos (ECs) that will MOP in 2024 & 2025
Condo rental volume trends
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%.
5
4
2
2
2
2
1
1
2
2
1
2
2
2
4
3
3
2
1
2
HDB rental market breakdown
HDB rental price trends
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.
Interested in buying your own BTO flat? Read on here: Full list of BTO projects hitting MOP in 2024/2025 & Our top picks near the MRT
HDB rental volume trends
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.
5
4
2
2
2
2
1
1
2
2
1
2
2
2
4
3
3
2
1
2
What do you think about the rising HDB rental prices? Let us know in the comments below or on our Facebook page.
About Sophiyanah David
Sophi, a seasoned copywriter specialising in Singaporean real estate and property, is one of the minds behind 99.co's informative articles. Like her colleagues at 99.co, Sophi is dedicated to keeping you informed about the ever-changing world of real estate so you can find your forever home. When off the clock, you can find her giggling and kicking her feet as she reads her romance novels, watching anime - if FMBA is not your fave, she might fight you (but you'll probably win) and looking up latest skincare trends.
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
Join our social media communities!
Facebook | Instagram | TikTok | Telegram | YouTube | Twitter
Leave a comment