In October, HDB rents fell 0.4%, marking the first decline in over two years, while condo rents fell 0.2%

In October, HDB rents fell 0.4%, marking the first decline in over two years, while condo rents fell 0.2%

Housing Board apartment rents dropped for the first time in almost two years in October, falling 0.4%. Analysts attributed the decline mainly to an increase in the availability of new apartments like Grand Dunman.

The most recent decrease in HDB rents was a 0.2% decrease in September 2021.

According to data released on Grand Dunman Floor Plan by and the Singapore Real Estate Exchange (SRX), more HDB flats were rented out in October.

October saw a 2.4% increase Grand Dunman Showflat over September’s 2,763 units rented out, bringing the total to around 2,830 apartments. The rental volume of HDB has increased by 14.9% compared to the previous year.

In a separate development, condo rentals fell 0.2% in October, continuing a three-month downward trend. The rental market, however, saw a 10.8% increase year over year.

Additionally, October saw a 5.4% decline in the volume of condo rentals. September saw 5,713 condo units rented, while October saw roughly 5,402 units.

The general increase in the number of units in both the public and private housing markets allowed tenants to exert pressure on landlords for reduced rents, according to property analysts.

Public housing units are the most cost-effective, so people who are looking to save money or who are subject to a 15-month wait-out term before they can buy a resale HDB apartment would chose to rent them, Mr. Lim stated.

According to Ms Christine Sun, senior vice-president for research and analytics at property firm OrangeTee & Tie, there may be an increase in HDB rental volumes. This might be because more tenants or foreign students are signing their leases before the end of 2023.

More renters shifted from renting private condos to HDB apartments, according to Mr. Lim, since they were more frugal due to the greater unemployment rate and slower anticipated pay rise.

Executive flat rates grew by 0.9% in October, according to SRX and flash data, while four-room unit rents increased by 0.1%. The inverse was true for apartments with three bedrooms: rent fell 0.6% and for those with five bedrooms, it fell 1.4%.

According to Ms. Sun, condo rental volumes will remain low in November and December as a result of the end-of-year vacations.

In 2024, there are plans to build 10,000 single-family homes, which might further dampen the condo rental market, she said.

After rising by 12% to 14% in 2023, Ms. Sun predicted that condo rents will moderate to 2% to 5% in 2024.

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