HDB, condo rents soften in May as leasing volumes dip: SRX, 99.co

Leasing volumes in both private and HDB markets fall

Jun 21, 2024

RENTS for Housing and Development Board (HDB) flats fell for the first time since January, as renters look towards the condo market where rents continue to soften.

Flash estimates released by SRX and 99.co on Friday (Jun 21) showed that HDB rents retreated 0.3 per cent month on month, but were still 6.2 per cent higher year on year.

Rents in the condominium market continued to decline for the second straight month, easing 0.5 per cent on the month from April. Compared with the same period the year before, condo rents were down 4.5 per cent.

The drop in rents for both markets came as leasing volumes for both markets declined.

HDB rental volumes fell 13.2 per cent to an estimate of 2,558 units in May, from 2,946 units in April. Year on year, volumes were down 12.3 per cent, and 8 per cent lower than the five-year average volume for the month of May.

Four-room flats accounted for 38.1 per cent of HDB rental volumes in May, followed by 35.4 per cent from three-room flats, 22 per cent from five-room flats, and 4.5 per cent from executive flats.

Rents for five-room flats were up 0.8 per cent in May from the month prior, while the rest of the room types experienced a fall in rents.

Three-room flat rents recorded the steepest month-on-month decline of 0.7 per cent. This was followed by four-room flat rents (-0.5 per cent) and executive flat rents (-0.4 per cent).

Mature estate rents decreased 0.8 per cent from April, while non-mature estate rents were up 0.5 per cent. Mature and non-mature estate rents increased 5.9 per cent and 6.9 per cent, respectively, on the year.

In the condo market, rental volumes fell 12.2 per cent on the month to 5,155 units rented in May, from 5,874 units in April. Year on year, rental volumes were 0.4 per cent lower, and 5.7 per cent lower than the five-year average volume for the month of May.

Leasing volume in the Outside Central Region (OCR) slightly outpaced the other regions, accounting for 35.5 per cent of total transactions in May. This was followed by the Rest of Central Region (RCR), which contributed 33.5 per cent, while the Core Central Region (CCR) accounted for 30.9 per cent.

All three regions posted a month-on-month decline in rents, with the RCR posting the largest one at 1.1 per cent. Rents in the CCR fell 0.2 per cent, and rents in the OCR dropped 0.7 per cent.

CCR rents recorded a year-on-year fall of 3.7 per cent, while RCR and OCR rents each fell by 4.9 per cent.

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