Singapore is expected to become more appealing to multinational corporations as rent prices fall which will attract more foreigners.
The number of condos rented out in April grew by 3.1 percent to 5,874 units. The amount of units rented in April grew by 4.4 percent over the previous year, but still a mere six percent below the five-year average rental rate.
A few landlords have decided to lower their rates and lease their condos fast in order to keep their apartments from becoming empty.
In April, renters opted for smaller apartments to cut the cost of renting in a volatile economic climate.
HDB rents, on the contrary, increased in the range of 0.3 percent in April. This is less rise than the 0.6 percent increase that took place in March.
Rents have increased because of a shortage of rental apartments. A smaller number of flats have completed the minimum of five years of occupancy in 2022.
The need for HDB flats has been remarkably strong since many tenants still choose these flats. They remain the most cost-effective option available on the market.
The rents for flats on estates that are mature rose by 0.7 percent, while the rents on non-mature estates fell by 0.3 percent.
The rents for five-room apartments fell by 0.4 percent in April. Other types of flats like executive apartments, as well as threeand four-room flats, also experienced slight rises.
HDB rents have increased by 7.6 percent since April 2023. This is the case for all kinds of flats within the non-mature and mature estates.
Local residents as well as blue collar workers will continue to contribute to the demand for rental HDB homes.
In April, HDB flats leased increased by 9.2 percent to 2,941 units.
The HDB rental market fell 9.5 percent year-over-year, and 9.7 percent less than the average of five years in April.
The difference in rent between HDB flats in estates that aren’t yet mature, and condominium units in suburbs continues to narrow.
The rent for a condo that has three bedrooms in Sengkang for instance was between $3,700 and $4,500. In comparison, the median rental for HDB executive flats or five-room apartments in the estate was between $3,350 and $3,600.
A condo that is rented at a higher cost could be more advantageous for tenants
Rents for HDBs will rise less than condo rents in the second quarter of 2024 because of tenant opposition to rent increases.