Rents for HDB flats and condos continue to rise in June as demand surges

SINGAPORE — Rental prices for homes here continued to rise last month, with HDB rent climbing for the 24th straight month and private apartment rents increasing for the 18th straight month.

HDB rents increased by 2.3 per cent in June compared with 2.7 per cent the month before, with rents in both mature and non-mature estates rising, according to flash figures from property portals 99.co and SRX released on Thursday (July 14).

However, the number of HDB flats rented out in June decreased by 0.8 per cent compared with May. An estimated 1,395 flats were rented last month, down from 1,516 units in May.

Meanwhile, condo rents increased by 2.1 per cent in June, compared with May's 2.9 per cent.

About 4,175 condo units were rented in June, a 4.7 per cent month-on-month increase compared with May's 3,989 rentals.

Property analysts said rents are expected to increase in the second half of the year amid strong demand.

OrangeTee and Tie senior vice-president of research and analytics Christine Sun said that rents for HDB flats and condos have reached new highs.

She said that demand has surged dramatically over the past few months, causing rents to increase at a faster pace this year compared with last year, for both property classes.

"Many expatriates, permanent residents and international students have returned with the almost complete easing of our border controls," said Ms Sun.

She added that those upgrading from HDB flats have added to the demand as many have rented units after selling their existing flats while they wait for the completion of their new homes, in order to avoid paying additional taxes on second properties.

Given that non-resident employment is expected to rise in the coming months, said Ms Sun, rental growth is likely to persist for the rest of the year.

Meanwhile, Huttons Asia chief executive Mark Yip said that the decrease in volume of HDB flats rented could be due to some Malaysians not renewing their leases, and instead going back to their pre-Covid-19 routine of commuting to Singapore daily for work.

With interest rates rising, he said, condo and HDB rents are expected to increase in the second half of this year.

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This article was first published in The Straits Times. Permission required for reproduction.