Singapore private condominium and pubic housing (HDB) rental costs increased by 2.1% and 2.3%, respectively, from the prior month in June 2022, continuing their increasing trend.
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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