As per the stats obtained from the month of October, rents for private Singapore Condo and HDB flats increased in October with the rise in demand. This is possibly the outcome of recently implemented cooling measures as more tenants these days are looking forward to HDB flats at comparatively lower rental prices.
An exponential rise of 1.8% in HDB rents has been experienced in the market during October month. However, it was 3.3% in the month of September. On the other side, the executive flats are experiencing a rise of 6.1% in rents.
A larger number of HDB flats were rented in the month of October. The volume has further increased by 10.3% leading to the estimated number of 1995 units in comparison to only 1809 units rented out in September.
Condominium rents have grown by approximately 2.7% in the month of October, in comparison to the 3.3% reported in September. Note that this rise in rents has been observed in all regions including suburbs, city fringes, and central Singapore. Moreover, the rental volume has decreased by almost 8.7% to an estimated count of 4355 units in comparison to 4771 units in the month of September.
The October month marks a growth in condo rents for the 22nd straight month and the 28th in the case of HDB flats. This is observed to be the longest streak among both markets. Properly analysts reveal that the surge in the rental volume of HDB flats represents reduced demand of tenants towards condo units; however, they are turning towards HDB flats for cheaper rents with strong demands in both segments.
The professionals in the real estate sector believe that cooling measures have restored the interim home rental process which further propels the HDB market.
After September 30, owners of the private properties need to wait for 15 months after selling their current privately owned property to buy an HDB resale flat without worrying about housing grants. Earlier they were asked to buy a resale flat from the open market within six months of selling their private property. Since the prime intention of homeowners is to shift to HDB flats, they have now switched to HDB rental market while pushing the rents and demands in October.
The executive flat rents that are otherwise favored by private property downgraders based on generous floor area have grown by almost 6.1% which shows that the rental market has been considerably influenced by these downgrades. The rise in executive flat rents displays higher demands for space in the HDB market.
The overall executive HDB flat rent on monthly basis was reported to be $3000; it is $2800 for a 5-room flat, $2600 for a 4-room flat, and only $2300 for a 3-room flat. With the tough housing conditions in the local market, renters are now left with no choice and they need to accept the rise in rents. Furthermore, with the expected rise in service and goods tax, interest rates, and property tax rates in the year 2023, there may be a considerable rise in rental prices.
