SINGAPORE: A five-room flat in Ang Mo Kio made the news recently for breaking the record for rental rates, commanding the high price of $6,500 when it was rented out in February.
The flat at Block 549 Ang Mo Kio Avenue 10 is an unusual one, however, being two three-room units made into one. This means that it has four bedrooms, and a size of 1,463 sq ft, whereas five-room flats are commonly only 1,184 sq ft.
Nevertheless, even with property rates soaring in Singapore, the $6,500 rental fee is still pretty astounding.
According to a report from PropertyGuru updated on March 13, the median HDB rental flat prices for the last quarter of last year for a five-room flat in Ang Mo Kio was $3,150, or less than half of the price of the flat at Block 549 Ang Mo Kio Avenue 10.
Moreover, the same report says that the HDB rental flat price range according to size for the final quarter of 2022 is quoted at $2,700 to $4,200 for a five-room unit, a far cry from $6,500.
Four-room units, meanwhile, typically rent out for $2,650 to $3,850, and three-room units go for a rental rate between $2,000 to $2,850.
“In general, these are the range of prices you’re looking at if you want to rent an entire HDB flat. The sharply rising median HDB rental prices show us that demand for HDB flat rental units is on the rise.
The lower end of the range typically applies to flats in ‘ulu’ or non-mature estates (e.g. Woodlands and Bukit Panjang), while HDB flats in mature or city fringe estates (e.g. Toa Payoh and Kallang/Whampoa) command top dollar. Newer HDB flats or those close to amenities such as choice primary schools, MRT stations, or bus interchanges are typically pricier,” PropertyGuru added.
But rental prices in Singapore are definitely on the rise. AsiaOne reported on Mar 21 that the record high for a rental flat had been $6,200, the price for a four-room unit in Tiong Bahru that was rented out in January, before the five-room flat at Block 549 Ang Mo Kio Avenue 10 topped it.
Knight Frank’s Head of Research in Singapore, Mr Leonard Tay, recently said, “Around 17,000 new private homes are set for completion in 2023 that should provide some relief to accommodation pressures. However, until such time, it will remain a landlord’s market and rents are likely to rise further.” /TISG