SINGAPORE: Condo rental prices dipped in April 2024, marking a nine month decline since July 2023, according to 99.co and SRX. This downward trend comes after a brief respite in March.
Mr Luqman Hakim, Chief Data & Analytics Officer at 99.co, noted that this is due to the surplus supply in the market, with approximately 50 condos having obtained their Temporary Occupation Permit (TOP) since 2023 and another 20 expected to TOP in 2024.
He noted, “The effect of this surplus supply might continue to suppress Condo rental prices in the near future.”
In contrast, HDB rental prices continue to surge, reaching new all-time highs (ATHs). Though the overall price increase in April was a modest 0.3%, the upward trajectory has been consistent since the beginning of the year.
Mr Hakim suggests that the increasing rental prices for HDB properties could be due to their appeal as a viable alternative to Condo rentals.
Condo Rental Market
In April 2024, condo rents decreased by 0.4% compared to March 2024. While rents in the Core Central Region (CCR) increased by 0.1%, those in the Rest of Central Region (RCR) and Outside Central Region (OCR) decreased by 0.2% and 0.5% respectively.
Year-on-year, overall rents dropped by 4.6% from April 2023. The decline was steeper in CCR (5.2%), RCR (4.3%), and OCR (4.1%).
Rental volumes saw a 3.1% month-on-month increase, with an estimated 5874 units rented in April 2024 compared to 5699 units in March 2024. Year-on-year rental volumes were 4.4% higher.
Despite this increase, volumes remained 6.0% lower than the 5-year average for April. Notably, 35.4% of the total volumes were from OCR, 32.1% from RCR, and 32.4% from CCR.
HDB Rental Market
April 2024 witnessed a 0.3% increase in HDB rents compared to March 2024. Rents in Mature Estates rose by 0.7%, while those in Non-Mature Estates dipped by 0.3%.
Across different room types, 3 Room, 4 Room, and Executive rents increased by 0.6%, 0.5%, and 0.1% respectively, while 5 Room rents saw a decrease of 0.4%.
Year-on-year, overall HDB rents soared by 7.6% from April 2023. Mature Estates and Non-Mature Estates rents increased by 7.8% and 7.3% respectively.
Additionally, all room types experienced rent hikes: 3 Room by 6.4%, 4 Room by 8.6%, 5 Room by 7.4%, and Executive rents by 10.1%. Rental volumes also surged by 9.2% month-on-month. In April 2024, around 2941 HDB flats were leased, marking an increase from the 2692 units rented in March 2024.
However, year-on-year rental volumes decreased by 9.5% from April 2023, remaining 9.7% lower than the 5-year average for April.
By room type, 3 Room units accounted for 33.3% of the total volumes, 4 Room units with 36.9%, 5 Room units with 24.4%, and Executive units with 5.4%.
/TISG
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