Singapore HDB rents hit new highs in Q1 

Rents grew 2.7% q-o-q and 26.7% y-o-y.

In a recent report, OrangeTee said HDB rents continue to hit record highs amid higher leasing volume last quarter. According to the HDB public housing data for Q1 2023, the approved applications to rent out HDB flats rose by 13.9 per cent from 8,476 units in Q4 2022 to 9,657 units in Q1 2023. 

On a year-on-year basis, volumes declined by 5.2 per cent from 10,189 units in Q1 2023. 

Here’s more from OrangeTee:

Rents hit a new record high last quarter, climbing by 2.7 per cent q-o-q and 26.7 per cent y-o-y, according to the data from the real estate portals 99.co and SRX. 

Rental demand increased as tenants returned to the market, and leasing activities increased after the year-end holidays and Chinese New Year period. Some tenants shifted downstream from renting private properties to HDB flats as rent prices have surged significantly Island wide, and many are looking for cheaper accommodation. 

Although more flats have been completed, most cannot be leased immediately as they need to obtain the minimum occupation period first. It will also take time for local tenants to vacate their rental premises and shift to their new homes. 

Moreover, the HDB rental stock may shrink over time since fewer flat owners are keeping their units for rental income as they have to sell their units before upgrading to a private home to avoid the ABSD.

The increased ABSD, tightened loan limits, and escalating private home prices have also hampered buyers' affordability, meaning fewer flat owners can keep their HDB flats for rental while they stay in private homes. 

Rents are projected to rise by 15 to 18 per cent, and around 32,000 to 35,000 flats may be leased in 2023.