5-room HDB flat in Tanjong Pagar rented out for record $7,600

A rare exception or a sign of things to come?

A five-room flat in Block 2 Tanjong Pagar Plaza was rented out for a record $7,600 last month, according to HDB records. 

HDB records showed that this is only the second time monthly rents for flats have exceeded the $7,000 mark. 

In September, a five-room unit in 11 Pine Close near Old Airport Road went for $7,400 a month.

But this unit in Tanjong Pagar is a new high for HDB monthly rental rates in Singapore, Shin Min Daily News reported on Thursday (Dec 22). 

According to EdgeProp, Block 2 Tanjong Pagar Plaza has a total of 200 units, of which 10 are five-room flats.

It is also a four-minute walk to Tanjong Pagar MRT Station, with nearby amenities including three supermarkets, and three shopping malls.

A resident of the block told Shin Min Daily News that the 1,300 sq ft flat - comprising two adjacent three-room flats - has four rooms, two living rooms, two kitchens and two toilets.

A similar-sized flat at nearby Pinnacle＠Duxton is asking for $5,500 rent a month, according to checks by AsiaOne on PropertyGuru. 

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said to the Chinese evening daily that the flat being rented out at such a high rate is a "rare exception".

"The unit in Tanjong Pagar has large living spaces, and is located in the city centre. The tenants are likely several people who work nearby," she said.

Nicholas Mak, chief research officer of Mogul.sg, said that the availability of rentals for five-roomers in Tanjong Pagar are rare. 

"There are very few HDB flats in Tanjong Pagar, and many tenants will rent the nearby Pinnacle＠Duxton," he said, adding that the median rental rate of a five-room unit there is around $5,200.

The number of tenants allowed in larger Housing Board flats and private residential properties was recently increased for about three years.

Owners of four-room or larger flats and private homes of at least 90 sqm will be allowed to house up to eight unrelated people who are not from the same family unit from from Jan 22, 2024, to Dec 31, 2026 - an increase from the current cap of six, said HDB and the Urban Redevelopment Authority. 

The move is to better meet rental demand and support households that intend to rent.

ALSO READ: Subletting HDB flats? These 5 assumptions could land you in trouble

chingshijie@asiaone.com