The most recent flash numbers from SRX Property and 99.co, released on 14 July, show that condo rentals have increased for 18 straight months while HDB rents have increased for 24 consecutive months.

The rental rates for both property classes also reach new highs (see chart).

One of the factors for the recent spike in rental rates is the return of foreigners, permanent residents, and international students with Singapore’s border controls almost entirely relaxed. Many HDB upgraders and property sellers also decided to rent after selling their existing place while they wait for completion of their new property or wait for a good time or property to purchase.

New developments that are under construction have their completion slowed down due to severe disruptions to global supply chains, lack of manpower and the rising cost of building materials.

We at Lushhome anticipates that the steady influx of expats and foreigners would support the rental market, which might maintain rates high in the second half of 2022.

The chief executive of Huttons, Mark Yip, expects residential property rentals to rise further in the second half of the year, supported by a strong economy that is conducive to more employment.

Rental rates and transactions volume

Year on year, total condo rents increased by 21.1 per cent and overall HDB rents grew 17.9 per cent.

Condominium rentals rose by 2.2%, 2.4%, and 1.7%, respectively, month over month in the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), and by 18.6%, 21.3%, and 22.8% on year.

In June 2022, over 4,175 condo units were rented, which was an increase of 4.7% compared to the 3,989 units rented the month before but a decrease of 18% year over year.

Over at Lushhomemedia.com, we believe the rental market will remain robust for the rest of 2022. Supplies for rental properties are at a low given the increased demand since the start of the year. We are seeing some condo developments with no units available for our prospective tenants and record prices transacted at highly demanded locations.

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SRX Property data showed HDB rents rose 1.4 per cent in July from the previous month, a bigger rate of increase than the small 0.4 per cent rise for private condominiums and apartments,

One possible reason for the “healthy” increase in HDB rents is demand from Malaysian workers or their employers to rent HDB flats here given the Covid-19 border restrictions, said ERA Realty’s head of research and consultancy Nicholas Mak.

The recent announcement of the Periodic Commuting Arrangement would allow some of these workers to go to Malaysia to see their families. However, as they would have to stay in Singapore for at least 90 days before returning for home leave, these workers would still require accommodation in Singapore, said Mr Mak.

The overall edging up of rents for both private and HDB homes last month could also be due to some landlords raising asking rents after observing a sudden surge in demand during the circuit breaker period, said Christine Sun, head of research and consultancy at OrangeTee & Tie.

She also observed that more expats could be opting for cheaper private housing options given current job and pay uncertainties. This “shift in demand” may be why rents rose for private units in the suburbs (outside central region) and the city fringes (rest of central region). Conversely, rents for more luxurious homes in the prime districts (core central region) dipped for the fifth straight month.

“We may expect more tenants to continue to opt for cheaper housing options as some may be facing pay cuts or given smaller housing packages in the current macroeconomic uncertainties,” said Ms Sun.

Year-on-year, overall rents for private apartments in July are down 0.9 per cent from from July 2019, and are 17.5 per cent off their peak in January 2013. For HDB flats, rents are down by 0.5 per cent from a year ago and 14.9 per cent lower than their peak in August 2013.

Rental volume, meanwhile, shrank for both the private and HDB markets last month.

July leasings for private condominiums and apartments fell 7.2 per cent month-on-month to 3,880 units. This is 32.3 per cent lower than a year ago and 22.8 per cent less than the five-year average volume for the month of July.

The volume for HDB flats in July tumbled 19.1 per cent from June to 1,435 flats. This is 31.6 per cent lower than a year ago and 25.7 per cent below the five-year average volume for the month.

The weakness in the employment market which led to job losses among some expatriates resulted in the contraction in leasing demand, said Mr Mak. This is illustrated by the sharp 30-plus per cent year-on-year decline in leasing volume in both the private and public housing market in July.

Ms Sun said fewer expats are also coming to Singapore in recent months as border restrictions and stay-home notices for inbound travellers are still imposed.

Rising unemployment, especially in the tourism, hospitality, aviation and services sectors, may also now be affecting the rental demand for both HDB and private units, she added.

Looking ahead for the private rental housing market, leasing demand and, consequently rents, may remain under pressure.

Rental demand for more affordable HDB flats, especially those located near industrial estates, is expected to remain healthy, said Mr Mak.

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Condominium rents rose 0.1 per cent from January and are up 3.3 per cent year-on-year.

Month-on-month, rents in the core central region (CCR) rose 0.9 per cent, rest of central region (RCR) rents decreased 0.4 per cent and rents from the outside central region (OCR) held steady.

Rents in all regions were up year-on-year, with the CCR rising 5.1 per cent, the RCR up 2.9 per cent and the OCR increasing 2.4 per cent.

Meanwhile, volumes rebounded from a minor dip in January, rising 20.6 per cent with an estimated 4,830 units rented during the month compared to 4,006 units in January.

Year-on-year, rental volumes climbed 20.3 per cent, 32 per cent higher than the five-year average volume for the month of February.

As for the HDB rental market, rents rose 0.4 per cent from January and 2.4 per cent year-on-year.

Rents in mature estates and non-mature estates rose 0.5 per cent and 0.4 per cent from January respectively. Year-on-year, rents rose 2.7 per cent and 2.1 per cent respectively.

Except for executive flats’ rents, all flat types experienced rent increases from January. Three-room flat rents rose 0.4 per cent, four-room rents went up 1.1 per cent and five-room rents increased 0.5 per cent. Rents for executive flats fell by 3.6 per cent.

Year-on-year, all flat types saw increases in rents. Three-room flat rents rose 2.2 per cent, four-room rents went up 3.1 per cent while five-room rents increased 2.1 per cent. Rents for executive flats were flat.

HDB rental volumes also rose 11.5 per cent from January and 17.9 per cent year-on-year. Volumes were 15.2 per cent higher than the five-year average volume for February.

Four-room flat rentals took up 36.1 per cent of the volume for February, followed by 32 per cent from three-room flats, 25.5 per cent from five-room flats and 6.4 per cent from executive flats.

The rise in rental volume could be due to some tenants returning to Singapore after the Chinese New Year holiday, said ERA Realty’s head of research and consultancy Nicholas Mak. Some tertiary educational institutions also start the new school term in February and March, leading foreign students at these schools to rent their accommodation in the month, he added.

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Rents of private apartments and condominiums climbed 0.9 per cent month on month, after dipping 0.5 per cent in December, according to real estate portal SRX Property’s flash data.

Year on year, private home rents rose 2.9 per cent from January 2019, but are still down 15.6 per cent from their peak in January 2013.

The stronger rental prices came on the back of fewer private homes being completed last year and some older developments being demolished to make way for new homes after en bloc sales.

Leasing volume for private non-landed homes shrank for a sixth consecutive month, dipping by 4.9 per cent month on month to 3,892 units.

The lower rental volume could be attributed to the rising rental prices and the Chinese New Year period when the number of viewings typically fall as both landlords and tenants are on holiday, said Christine Sun, head of research and consultancy at OrangeTee & Tie. The peak rental season usually occurs around the second and third quarters of the year.

Although leasing volume was lower, SRX’s rental index increased, mainly because the decrease in supply was greater than the decline in demand, said ERA Realty’s head of research and consultancy Nicholas Mak.

Year on year, rental volumes for condos are down 22.5 per cent and are also 7.5 per cent lower than the five-year average volume for the month of January.

Ms Sun expects a slowdown in the rental market as the outbreak of the virus, officially named Covid-19, hits sectors such as tourism, hospitality and MICE (meetings, incentives, conferences and exhibitions).

“This may have some impact on hiring, which may affect the leasing market temporarily,” she said. “However, we may expect leasing demand to rebound when the situation stabilises or improves. Singapore had emerged strongly after the last Sars epidemic and proven to be resilient amid crises. The lion city will remain attractive as one of the top investment destinations in the long term.”

Over in the public housing market, HDB rents rose 0.8 per cent last month from December. Year on year, they increased by 2 per cent, but were still down 13.5 per cent from their peak in August 2013.

Rental volumes dipped 5.1 per cent month on month, with 1,653 HDB flats taken up in January, versus 1,741 units in December. But year on year, volume dropped by 22.5 per cent from a year ago, and was also a substantial 14.4 per cent lower than the five-year average for the month of January.

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Overall condo rents increased 1.2 per cent from October, and is up by 4.6 per cent year on year. However, they are still 16 per cent below their peak in January 2013.

Rents in the suburbs, or the outside central region (OCR) climbed the most, with a 1.6 per cent increase from October to November, while rents in the core central region (CCR) rose 1.2 per cent. Rents in the rest of the central region (RCR) also gained 0.7 per cent.

Year on year, condo rents were up in all regions last month: CCR by 5.8 per cent, RCR by 3.7 per cent, and in the OCR by 4.4 per cent.

The SRX flash data released on Wednesday also showed that some 3,980 condo units were leased in November, down 7.6 per cent from 4,307 units in October, and 3.1 per cent lower from a year ago.

SRX added that condo rental volume has also shrunk for the fourth consecutive month this year, though volumes are 7.5 per cent higher than the five-year average volume for the month of November.

In the public housing market, HDB rents inched 0.1 per cent lower last month from October, and are still down 14.5 per cent from their peak in August 2013.

For the month of November, rents for three-room flats rose 0.4 per cent, while rents for five-room and executive flats climbed 0.1 per cent and 0.7 per cent respectively. However, rents for four-room flats fell 0.5 per cent.

In non-mature estates, rents declined 0.4 per cent, while rents in mature estates rose 0.1 per cent.

Year on year, HDB rents were up 1.6 per cent, with all room types posting increases, led by a 3.4 per cent increase in executive rents.

There were 1,842 HDB flats rented in November, a 0.1 per cent increase from 1,840 units in October.

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Overall condo rents declined 0.2 per cent from September, but rose 4.2 per cent year on year. However, they are still 16.9 per cent below their peak in January 2013.

The core central region (CCR) was the hardest hit, with a 0.6 per cent fall from September to October, while rents in the suburbs, or outside central region (OCR) slipped 0.2 per cent. Rents in the rest of the central region (RCR), however, inched up 0.1 per cent.

Year on year, condo rents were up in all regions last October: CCR by 6.3 per cent, RCR by 4 per cent, and in the OCR by 2.8 per cent.

The SRX flash data released on Wednesday also showed that some 4,341 condo units were leased in October, down 0.8 per cent from 4,378 units in September, and 4 per cent lower from a year ago.

Noting that condo rental volume shrank for a third consecutive month, Christine Sun, head of research and consultancy at OrangeTee & Tie, said that the decline in rental volume may be seasonal, as leasing demand usually falls during the last quarter, when most expatriates would have already renewed or signed new leasing contracts.

“Leasing demand may have also dipped on the back of the weakening employment outlook for Q4, as many firms have indicated that they will be cutting back on hiring, amid the current trade conflicts and global economic uncertainty.

“However, there could be a silver lining on the horizon, as some MNCs (multinational corporations) may redeploy their employees to work in Singapore, or consider shifting their headquarters here amid the growing unrest in Hong Kong. This may lend some support to the private rental market in the coming months,” added Ms Sun.

Over in the public housing market, HDB rents rose 0.3 per cent last month from September, though they are still down 14.4 per cent from their peak in August 2013.

For the month of October, rents for three-room and four-room flats climbed 0.4 per cent each, and rents for five-room flats edged up 0.3 per cent. But rents for executive rents fell 1.5 per cent. In non-mature estates, rents rose by 0.6 per cent, while rents in mature estates remained the same.

Year on year, HDB rents were up 1.4 per cent, with all room types posting increases, except for executive rents, which fell 0.6 per cent.

There were 1,830 HDB flats rented in October, a 4.3 per cent decrease from 1,913 units in September.

Four-room flats were the most popular last month, making up 34.1 per cent of total rental volume, followed by three-room flats with 32.4 per cent. Five-room flats accounted for 26.8 per cent of volume, and executive flats 6.7 per cent.

HDB rental volumes decreased 9.6 per cent from October 2018, and are also 1.4 per cent lower than the five-year average volume for the month of October.

According to Ms Sun, the weakened demand for HDB flats comes as rents are rising.

That said, she expects that the continual tussle for tenants amid the rising supply of HDB flats may exert some downward pressure on rents next year.

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Meanwhile, rental volumes fell for private condominiums, but rose for HDB flats on a month-on-month basis.

Overall rents for condos declined 0.4 per cent from August, but grew by 3.2 per cent year on year. Condo rents in September were also down 16.9 per cent from the peak in January 2013, with all regions experiencing rental price decreases.

The core central region (CCR) was the hardest hit, with a 1.1 per cent fall in September, while rents in the city fringes or rest of central region (RCR) slipped 0.2 per cent, and rents in the suburbs or outside central region (OCR) dipped 0.1 per cent.

Year on year, condo rents in all regions increased: CCR by 4 per cent, RCR by 2.8 per cent and OCR by 2.9 per cent.

In addition, about 4,193 condo units were leased in September, down 11.9 per cent from 4,759 units in August. However, volumes were 9.5 per cent higher than the five-year average volume for the month of September. Year on year, condo rental volumes shrank 7.3 per cent from September 2018.

In the public housing market, HDB rental prices fell 0.3 per cent from August, and were down 14.8 per cent from its peak in August 2013. In particular, five-room and executive rents rose by 0.1 per cent and 0.2 per cent respectively, while three-room and four-room rents fell respectively by 1.1 per cent and 0.3 per cent.

Year on year, HBD rents climbed 1.1 per cent in September, with all room types except executive flats experiencing rental increases. In mature estates, rentals rose by 1.3 per cent, while those in non-mature estates were up by 0.8 per cent from a year ago.

Rental prices have continued to fall for a second consecutive month. Christine Sun, head of research and consultancy at OrangeTee & Tie, expects HDB rental prices to flatline, or face some downward pressure with the increasing supply of flats, and a possible hiring contraction in the coming months.

For the month of September, about 1,802 HDB flats were rented, representing a 2.6 per cent increase from the 1,756 units in August, and 4.8 per cent higher than the five-year average volume for the month.

By room types, three-room flats were the most popular last month, making up 34.9 per cent of the total rental volume, followed by four-room flats which took up 33.9 per cent. Five-room flats accounted for 24.8 per cent of volume, while executive flats accounted for 6.3 per cent.

Year on year, HDB rental volumes decreased by 2.6 per cent from September 2018.

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The fall in rents for condominiums and private apartments in May followed a 0.5 per cent gain in April, which was adjusted from its initial flash estimate of 0.6 per cent.

The core central region saw the biggest decline in rents, down 0.8 per cent, followed by the rest of central region which was down 0.7 per cent. The outside central region bucked the trend and was up 0.5 per cent.

Overall, rents rose by 2 per cent versus the year-ago period.

The number of condo and private apartments leased in May edged down 0.2 per cent from April, with an estimated 4,801 units rented compared with 4,810 units in the preceding month. Year on year, units rented were 4.2 per cent lower than the 5,013 units recorded in May 2018.

In the HDB market, rents rose 0.1 per cent in May, following a 0.1 per cent drop in April.

Rents for three-room and five-room flats rose 0.9 per cent and 0.6 per cent respectively, while rents for four-room and executive flats fell by 0.5 per cent and 0.7 per cent respectively.

Rents for flats in mature estates remain unchanged, while non-mature estates saw rents increase by 0.3 per cent.

HDB rental volume decreased 6 per cent month on month in May. An estimated 1,887 HDB flats were rented versus 2,007 units in April. Compared to a year ago, rental volumes were 3.4 per cent lower than the 1,954 units in May 2018.

Year on year, overall HDB rents increased by 0.4 per cent, with rents for flats in mature estates and non-mature estates increasing by 0.3 per cent and 0.4 per cent respectively.

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SRX also revised its flash estimate of a 0.2 per cent fall in rents in December to a 0.2 per cent rise.

According to its estimates, January’s rise in non-landed private residential rents was broad-based, with the core central region, rest of central region, and suburbs seeing rent increases of 1.1 per cent, 2.3 per cent, and 2.1 per cent respectively.

Year on year, rents last month were also up 1.9 per cent, though down 17.9 per cent from their peak in January 2013.

Month on month, rental volume rose 18.3 per cent, with 4,373 units leased in January compared to 3,698 in December. Year on year, however, this was lower than the 4,579 units rented in January 2018.

OrangeTee & Tie head of research and consultancy Christine Sun said January’s strong rental showing could be due to more tenants returning to the market after the long year-end holidays.

“As the number of private homes being completed this year is about the same level as last year, rents may remain flat at between -1 and 1 per cent for the whole of this year,” she added. She expects rental volumes to continue strengthening, following last year’s ten-year high of 88,400 leasing transactions.

In the HDB market, rents edged up 0.3 per cent month on month in January, slowing from December’s 0.6 per cent rise.

HDB rents were also up 0.3 per cent year on year from January 2018, but remain 15.1 per cent lower then their August 2013 peak.

In January, some 1,864 HDB flats were leased, up 7.2 per cent from 1,738 units in December but down 3.8 per cent from the 1,937 units rented in January 2018.

Ms Sun noted that with more than 26,000 HDB flats reaching their five-year minimum occupation period this year, more flats could be put up for rental in the coming months. With such an increase, rents may correct by 1 to 3 per cent this year, while leasing volume may rise to between 55,000 and 56,000 units, she added.

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This came after rents dipped 0.5 per cent in September, with the figure revised by SRX from a 0.4 per cent decline.

After barely budging in 2018, private market rents are now down 0.1 per cent from a year ago – but are a hefty 20 per cent lower than their peak in January 2013.

But SRX data also showed rental activity staying sluggish. The number of condo and private apartments leased declined 1.7 per cent to 4,207 units last month. Year on year, rental volume was 0.5 per cent lower than a year ago.

In the HDB market, rents went up by 0.3 per cent month on month in October, after declining a revised 0.6 per cent in September.

Year on year, rents in October are 1.4 per cent lower than a year ago, and down by 15.4 per cent from their peak in August 2013.

More HDB flats were rented out, with an estimated 1,937 units leased in October, 10.2 per cent more than the 1,757 flats in September.

Compared to a year ago, October’s HDB rental volume was 8.9 per cent higher.

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