Singapore Rental Market Trends: November 2024 Insights
Published on 22/12/2024
The Singapore rental market displayed notable trends in November, with rents continuing their upward trajectory despite a seasonal decline in leasing volumes. Both Housing and Development Board (HDB) flats and private condominiums experienced rent increases, reflecting ongoing demand amid limited supply.
HDB Rental Market Overview
In November, HDB rents rose by 0.6%, marking the 32nd consecutive month of growth. This increase was primarily driven by larger flats, with 5-room flats experiencing the most significant rent hikes.
Source: HDB
Leasing volumes, however, fell by 5.2% month-on-month, aligning with historical trends where rental activity typically slows in the year-end period.
Private Condominium Rental Market Overview
Private condo rents similarly climbed by 0.7% in November. The Core Central Region (CCR) and Outside Central Region (OCR) contributed significantly to this growth.
Source: URA
Leasing volumes for condos dipped by 6.8%, reflecting similar seasonal patterns as seen in the HDB market.
Factors Driving Rental Increases
• Supply Constraints: Limited new housing supply has kept upward pressure on rents.
• Foreign Demand: An increase in foreign professionals relocating to Singapore has boosted rental demand.
• Preference Shifts: Tenants continue to favour larger units for added space and flexibility.
Market Outlook
Analysts expect rents to remain resilient in the near term, supported by sustained demand from expatriates and tight supply conditions. However, with an increase in housing completions expected next year, rent growth may moderate.
Overall, the Singapore rental market remains robust, with rising rents reflecting strong underlying demand even amid seasonal leasing volume declines.
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