Some analysts predict HDB rates to decline starting in the first three months of 2024. HDB flats will have to follow suit as rental prices of private properties are expected decrease by 2024.

HDB rental rates increased by 10,1% on average from one year to the next. Rents on mature estates have increased by 10.4 per cent.

The biggest rental increase was for executive flats (14.7%) followed by 5-roomers (10.7%), 3-roomers (10.5%), four-roomers 8.9%.

HDB’s total leasing volume increased 7.4 % to 2,891 estimated flats in December from 2,693 units in November.

The number was 12,8% higher compared to the level of December 2022 but only 0.14% lower than the average volume over the last five December months.

In terms of leasing volumes, the four-room apartment accounted for 36.2%. Three-roomers accounted 34.1 percent, followed by 5-roomers (24%) and executive apartments (5.7%).

In 2024 the landlords are going to be hit with a rise in property taxes, as well as an increase in annual values. As interest rates remain high, many landlords are likely to opt for lower rents than letting their units go vacant.

Analysts predict that private rentals will also continue to decrease in 2024.

The rental rates of residential properties in private hands could fall by up to 15% over the next 12 month as the market dynamics for rental housing continue to normalise.

Estimated 5,644 condos were leased in the last month, a 14 per cent increase.

While HDB’s rental market is growing, analysts are divided on its future.

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Analysts predict that the HDB housing rental market, still offering affordable housing options, will remain resilient and grow by 8 to 10% on average in 2024.

HDB is expecting to see rents increase by as much as 8 per cent between 2024 and 2025, due to the temporary relaxation in the occupancy cap.

It could be that more landlords will accept lower rents as well as a higher number of lease renewals in the lead up to the new calendar year, as we saw at the end 2022 and 2021. Demand is expected to be maintained in January of 2024 as more tenants will sign new leases, or renew their leases before the beginning of the year.

Rents were down by 11.6 percent on the year. The December volumes were 12.6% below the five-year volume average. The OCR was responsible for 38.2% of the total volume, the RCR 33.6% and the CCR 28.2%.

The cost of HDB rooms is rising across all room types

HDB rents increased by 1 percent. Rental prices in matured estates grew by 1.2 %, while rents in less matured estates grew by 1%.

All room types saw rents rise, with three-room apartments gaining by 2.1 percent, followed closely by five-roomers (1%) and executive flats (0.9%).

Even though the HDB market is tighter with fewer flats requiring a minimum period of occupation, tenants are unlikely to see rental increases as affordability remains their main concern.

HDB’s rental prices should stabilize by 2024. There will be a modest increase of 1-3 per cent.

In December 2018, the price of rental condominiums declined for the fifth time in a month, wiping away the growth that had been seen in the early half of 2023. HDB (Housing and Development Board) continued to see growth in the rental market.

The latest flash data, released by SRX & 99.co on Thursday (Jan. 18), showed that the rental price of condos declined 0.5 % from the month before, due to rental decreases in all regions.

Rents for condos in the Outside Central Region (OCR) and Rest of Central Region (RCR) were higher by 4,4% and 2,6% respectively. Rents outside the Central Region (OCR), as well as in the Rest of Central Region, were up by 4.4% and 2.6% respectively. Core Central Region Rents (CCR), were up 0.9 % on the year.

The decline of private rentals in December was less severe than the one in November. This is likely because new hires beginning work in the New Year have a slightly higher demand.