A greater number of HDB flats were leased out in April, with rents rising 9.2 percent to approximately 2,941 units.
However, rental rates for the HDB market decreased by 9.5 percent year over the previous year, and 9.7 per cent lower than the five-year average for April.
The gap in rent between HDB flats in non-mature estates and condo units in the suburbs is continuing to shrink.
Singapore will become more attractive to multinational companies as the rental costs decrease and will attract more foreigners.
The amount of condos rented in April increased by 3.1 percent to 5,874 units. While the total number of condos leased was up 4.4 per cent year on last year, it was 6 per cent lower than the five-year average for April.
The increase in condo leasing is a reason for some landlords to decide to let their properties quickly and compromise on their asking prices, rather than leave their units empty.
Two-bedroom and one-bedroom condos were the most popular type of rentals in April since tenants preferred smaller apartments to reduce rental expenses amid an uncertain economic situation.
HDB rents, on the other hand, rose by 0.3 percent in April. This is less rise than the 0.6 percent increase in March.
The rents have risen because of a shortage of rental units. A smaller number of flats have completed their minimum five-year occupation period from 2022.
The demand for HDB flats has been remarkably strong and many tenants still choose these flats. They are the most affordable option available on the market.
Flat rents on mature estates increased by 0.7 percent, whereas rents on non-mature estates decreased by 0.3 percent.
Five-room flats had lower rents in April, declining by 0.4 percent. Other types of flats like executive apartments and three- and four-room flats, also saw slight rises.
HDB rents have increased 7.6 percent since April 2023. This is the case for all flat types in older and non-mature estates.
Local residents as well as foreign students and blue collar workers will continue to support the rental demand for HDB apartments.
For example, the rent for a three-bedroom condo in Sengkang varied from $3,700 to $4,500. The median price for HDB executive or five-room flats at the estate ranged between $3,350 and $3,600.
Tenants may find better value in renting a condo for slightly more expensive rents
Rents for HDBs are expected to rise less than condo rents in the second quarter of 2024 because of tenant resistance to rents that are higher.