Fewer inquiries and a more selective tenant pool suggest a shift as new housing options emerge.
SINGAPORE: Singapore’s home rental surge appears to be slowing as tenants resist further hikes, creating a “growing disparity” in expectations. Property agents report reduced inquiries for HDB and condo rentals, attributing the shift to an influx of newly completed condos, offering tenants more choices.
Recent figures from SRX and 99.co indicate a 3.5 percent rise in condo rents for February, marking a 36.2 percent year-on-year increase. Yet, analysts foresee a tapering trend in 2023 as more HDB flats and private condos become available, and tenants awaiting Build-to-Order (BTO) flats exit the rental market.
The widening gap in expectations is evident, with landlords reluctant to lower rents due to rising costs like property taxes, maintenance fees, and mortgage payments. For instance, some landlords have set higher minimum rents to cover mortgage costs, while tenants negotiate or explore more affordable options in suburban locations or HDB flats.
As tenants explore alternatives, rents in the Outside Central Region saw the most significant monthly rise, at 4 percent in February, followed by the Core and Rest of Central regions. Analysts predict gradual moderation in rental growth, with relief likely in the year’s latter half due to an increase in private residential supply and reduced demand from slower economic and tech sector hiring.
