Singapore HDB rents up 7.5% in Q3

This is a new record for the rental levels. 

According to the HDB public housing data for Q3 2022, the approved applications to rent out HDB flats dipped a third consecutive quarter by 12 per cent from 9,309 units in Q2 2022 to 8,192 units in Q3. 

On a year-on-year basis, OrangeTee says volume declined by 21.4 per cent from 10,417 units in Q3 2021.

Here’s more from OrangeTee:

Rents hit a new record high last quarter, climbing by 7.5 per cent q-o-q, according to the SRX Rental Index. In the first nine months of 2022, rents surged 20.9 per cent. 

Rents have jumped substantially in recent months as many landlords have increased their rents in anticipation of more interest rate hikes which will translate to higher mortgage repayments. 

Currently, many landlords are still able to cope with the rising interest rates as they have passed on the additional costs to their tenants. 

With higher property taxes and possibly higher costs of living next year, we may expect landlords to raise rents further. 

Moreover, the 15-month wait-out period for private homeowners purchasing HDB resale flats may lead to more people renting in the interim. The increased demand will inevitably drive rents higher next year.