HDB rental prices at new high; Condo rental lowest since Jan 2023
PHOTO: 99.co
PUBLISHED ONMarch 20, 2024 4:24 AMBySophiyanah David
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 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
Condo rental price trends
In February 2024, rents for condominiums experienced a 1.0 per cent 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 per cent, 0.5 per cent, and 0.6 per cent, respectively.
On a year-on-year basis, overall condo rents exhibited a four per cent decrease compared to February 2023.
Condo rental volume trends
Rental volumes witnessed a significant decline of 21.0 per cent 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 per cent. Notably, rental volumes were 11.9 per cent lower than the five-year average volume for the month of February.
Region-wise, OCR accounted for 35.8 per cent of total rental volumes, followed by RCR at 32.8 per cent and CCR at 31.4 per cent.
HDB rental market breakdown
HDB rental price trends
In February 2024, HDB rents experienced a notable increase of 1.0 per cent from January 2024.
Both mature and non-mature estates recorded rent increases of 1.3 per cent and 0.5 per cent, 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 per cent from February 2023. Mature estates and non-mature estates witnessed rent hikes of 7.2 per cent and 9.5 per cent, respectively.
HDB rental volume trends
Volume-wise, there was a decrease of 19.1 per cent 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 per cent decline.