Market analysts expect condo rental prices to remain stable.
In November 2024, both condominium (condo) and HDB rental volumes in Singapore declined, coinciding with the typical year-end lull in leasing activity, 99.co and SRX reported.
Despite the drop in volumes, rental prices for both markets increased slightly, reflecting stable demand.
Condo rental prices rose by 0.2% month-on-month (MoM), driven by a 0.8% increase in the Outside Central Region (OCR), although prices in the Core Central mRegion (CCR) and Rest of Central Region (RCR) fell by 0.6% and 0.1%, respectively.
Year-on-year (YoY), overall condo rental prices declined by 1.3%, with decreases of 2.4%, 1.4%, and 1.5% in CCR, RCR, and OCR, respectively.
About 5,010 condo units were rented in November, representing a 12.3% decline from October's 5,712 units and 10.1% below the five-year average for November.
However, volumes were still 0.8% higher than the same period last year.
HDB rental prices increased by 0.4% MoM, with Mature Estate and Non-Mature Estate rents rising by 0.2% MoM and 0.5% MoM, respectively.
Amongst room types, 4-room flats saw a 1.3% increase, whilst rents for five-room and Executive flats fell by 0.7% and 1%, respectively.
HDB rental prices were up 4.2% YoY, with gains of 4.6% YoY in Mature Estates and 3.5% YoY in Non-Mature Estates. Rental volumes for HDB flats dropped 13.8% MoM to 2,155 units, marking a 20% YoY decline and 18.3% below the five-year average for November.
"The condo and HDB rental market was subdued in Nov 2024 due to seasonal factors," Mark Yip, CEO, Huttons Asia said in a note.
Some renters took the opportunity to upgrade from HDB flats or co-living spaces to condos due to relatively stable condo rents.
"Leasing activities tend to slow down during the year-end period, when many expatriates are on holiday. However, some expatriates may choose to renew their leases or enter into new lease agreements in December as they would want to secure a home before the new year begins," OrangeTee said in a separate commentary.
Market analysts expect condo rental prices to remain stable, supported by improving employment conditions.
"With firmer demand from an improving employment market, rents of private homes in 2024 might be unchanged from 2023's levels. HDB rents are estimated to increase up to 4% in 2024, lower than the 10.1% seen in 2023," Yip said.
For OrangeTee, condo rental prices could see growth of 2% to 4% next year, reflecting stronger business sentiment and expatriate hiring amidst a stabilising global economy.
