SINGAPORE: In the latest February 2024 HDB and condo rental report from 99.co and SRX, the condo rental prices hit their lowest point in over a year since January 2023.
According to Mr Luqman Hakim, Chief Data & Analytics Officer at 99.co, this downward trend has persisted for 13 consecutive months.
“The continued downward spiral is due to the glut of supply that came to the market in 2023, creating this downward pressure on rental prices,” he said.
Condo Rental Market
With too many condos available, rental prices are significantly under pressure, decreasing by 1.0% from January 2024.
Specifically, rental prices in the Core Central Region (CCR), the Rest of Central Region (RCR), and the Outside Central Region (OCR) decreased by 1.6%, 0.5%, and 0.6%, respectively.
Year-on-year, overall condo rents have plummeted by 4% since February 2023, with CCR, RCR, and OCR experiencing declines of 5.7%, 3.9%, and 2.1%, respectively.
In addition, rental volumes dropped by 21.0% month-on-month, equating to an estimated 4751 units rented in February 2024 compared to 6017 units in January 2024.
This decrease represents a 7.7% decline year-on-year and is 11.9% lower than the 5-year average volume for February.
When broken down regionally, OCR accounted for 35.8% of total volumes, followed by RCR at 32.8% and CCR at 31.4%.
HDB Rental Market
On the flip side, HDB rental prices witnessed a contrasting trajectory, reaching a new all-time high in February 2024 after a slight dip the previous month.
According to Mr Hakim, “HDB rising prices is due to increasing demand from renters seeking relief from inflation where the other alternative of renting from Condominiums is still considered too expensive.”
In February 2024, HDB rents increased by 1.0% from January 2024, with Mature Estates and Non-Mature Estates rents rising by 1.3% and 0.5%, respectively.
All room types recorded rent increases month-on-month: 3 Rooms by 0.4%, 4 Rooms by 1.5%, 5 Rooms by 0.3%, and Executives by 2.6%.
Comparing year-on-year figures, overall HDB rents surged by 8.4% since February 2023, with Mature Estates and Non-Mature Estates experiencing increases of 7.2% and 9.5%, respectively.
Additionally, all room types observed rent hikes: 3 Rooms by 7.8%, 4 Rooms by 8.5%, 5 Rooms by 8.1%, and Executive rents by 9.0%.
However, despite the upward trajectory in rental prices, HDB rental volumes decreased by 19.1% month-on-month, with an estimated 2448 flats rented in February 2024 compared to 3027 units in January 2024.
This decline translates to an 8.4% decrease year-on-year and is 6.9% lower than the 5-year average volume for February.
Breaking it down by room type, 3-room flats constituted 31.7% of total volumes, followed by 4-room flats at 37.3%, 5-room flats at 25.4%, and Executive flats at 5.7%.
The decline in rental volumes for condos and HDB flats can be largely attributed to the festive Chinese New Year in February. According to Mr Hakim, “We expect volume to resume pick-up in Q2 of 2024.” /TISG
Read also: 99-SRX: HDB prices hit all-time high in 2023; transaction volume expected to rebound in Q1 2024