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2Q 2024 Private Residential and HDB Rental Market


Rental Index

The private residential properties rental index has decreased by 0.8% quarter-on-quarter (q-o-q), indicating a slower growth rate compared to the previous quarter's 1.9%. This decline marks the third consecutive quarter of falling rents. The Landed property rental index fell by 0.9% q-o-q, while the Non-Landed property rental index decreased by 0.8% q-o-q. Notably, all regions experienced declines in Non-Landed property rental indexes in 2Q 2024, with the Rest of Central Region (RCR) and Outside Central Region (OCR) seeing drops of 1.4% and 1.3% respectively. The Core Central Region (CCR) experienced a minor contraction of 0.1% q-o-q, suggesting that rents in this area may have stabilized despite a year-on-year decline of 4.8%. The steady demand in CCR is prompting some renters to return from outlying areas, especially as new high-income expats are willing to pay more for proximity to their workplaces.



Rental Contracts

In 2Q 2024, the total number of private non-landed rental contracts increased by 1.9% q-o-q, totaling 19,744 transactions. However, this figure remains 9.9% below the 5-year average. With an additional 11,300 private non-landed units expected to be completed in the second half of 2024, the rental market may become more saturated. In a high-interest rate environment, landlords might opt to secure tenants at lower rents to cover mortgage costs.



HDB Rental Market


HDB rents are on the rise, with median rents across all flat types and towns increasing by an average of 1.9% year-on-year, driven mainly by a 3% rise in rents for 2-room flats. Despite this increase, HDB flats remain the most affordable option for tenants. Economic uncertainty has led some private property tenants to consider HDB flats, often willing to pay slightly higher rents for desirable units. The limited supply and increased demand for HDB rentals have contributed to the uptick in rents.


Higher HDB Median Rents Across All Towns for 3, 4, and 5-Room Flats

HDB Median Rents in 2Q 2024 Source: HDB, ERA Research and Market Intelligence


Town

1-Room

2-Room

3-Room

4-Room

5-Room

Executive

ANG MO KIO

*

$2,800 

$3,400 

$3,600 

*

BEDOK

*

$2,700 

$3,300 

$3,530 

*

BISHAN

$2,900 

$3,500 

$3,800 

*

BUKIT BATOK

$2,480 

$2,500 

$3,200 

$3,500 

*

BUKIT MERAH

*

*

$2,970 

$3,800 

$4,000 

BUKIT PANJANG

*

$2,600 

$3,100 

$3,300 

$3,530 

BUKIT TIMAH

*

*

*

*

CENTRAL

*

$3,100 

$4,400 

*

CHOA CHU KANG

*

*

$2,500 

$3,100 

$3,150 

$3,400 

CLEMENTI

*

$3,000 

$3,700 

$4,000 

*

GEYLANG

*

$2,700 

$3,300 

$3,700 

*

HOUGANG

*

$2,700 

$3,200 

$3,350 

$3,600 

JURONG EAST

*

$2,700 

$3,300 

$3,600 

$3,830 

JURONG WEST

*

$2,500 

$3,300 

$3,500 

$3,600 

KALLANG/WHAMPOA

*

$2,830 

$3,800 

$4,100 

*

MARINE PARADE

$2,850 

$3,250 

*

PASIR RIS

*

*

$3,200 

$3,500 

$3,600 

PUNGGOL

*

$2,930 

$3,200 

$3,300 

*

QUEENSTOWN

*

$3,000 

$3,800 

$4,300 

*

SEMBAWANG

$2,400 

*

$3,150 

$3,300 

$3,400 

SENGKANG

$2,300 

$2,900 

$3,200 

$3,300 

$3,500 

SERANGOON

$2,600 

$3,400 

$3,500 

*

TAMPINES

*

$2,800 

$3,300 

$3,600 

$3,850 

TOA PAYOH

*

$2,750 

$3,500 

$4,000 

*

WOODLANDS

*

$2,400 

$3,000 

$3,300 

$3,450 

YISHUN

*

$2,630 

$3,100 

$3,300 

$3,500 


HDB Rental Demand Holds Firm Amid Moderating Rents

Despite slight declines in rents, demand for HDB rentals remains robust, with 9,554 approved applications representing a 1.3% increase q-o-q, following a decline in the previous quarter.



Conclusion

The moderation in private residential rents has led to an increase in rental contracts in 1Q 2024. With 3,600 private residential units completed in 1H 2024 and approximately 11,300 more expected by year-end, the market may see further increases in rent-ready properties, intensifying competition for tenants. ERA predicts a potential easing of private residential rental prices by up to 5% year-on-year in 2024, with rental contracts estimated between 75,000 and 80,000. Conversely, the HDB rental market is expected to show resilience, with average rents potentially growing by up to 10% in 2024, and approvals ranging between 36,000 to 38,000 contracts.


Disclaimer

This information is extracted from era research and provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 


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