With a combination of various factors such as cooling measures, construction delays and sky-high property prices, rental rates are peaking at a six-year high.
Furthermore, with border restrictions easing, Singapore becomes more accessible to those looking for homes here. Rental demand will most likely follow the same trajectory and increase as well.
If you’re seeking to lease your own space, here are 5 ways you can save on rental.
1. Live outside of the central area
If you have the choice of working from home and don’t need to commute to work daily, renting outside of the Core Central Region (CCR) will be lighter on your wallet. The closer you get to the prime districts, the higher the rent. Here are the various districts located in each of the regions.
| Singapore Regions | Districts |
| Core Central Region (CCR) | 9, 10 and 11, and parts of 1, 2, 4, 6 and 7 |
| Rest of Central Region (RCR) | 3, 8 and 12, and parts of 1, 2, 4, 6, 7, 13, 14, 15 and 20 |
| Outside Central Region (OCR) | 16 to 19, 21 to 28, and parts of 5, 14, 15 and 20 |
Renting apartments in the Outside Central Region (OCR) is the most affordable, followed by the Rest of Central Region (RCR).
You also have more units available to choose from in the RCR and OCR, compared to the CCR, so there’s a higher chance of finding one that best suits your budget and needs.
| Location | Average price (S$) psf | Average price | Volume |
| CCR | 4.32 | S$4,462 | 3,379 |
| RCR | 3.71 | S$3,341 | 5,259 |
| OCR | 2.99 | S$2,563 | 9,197 |
It’s not just the rental that comes with a higher price tag in the central region. You’ll find that essential amenities such as restaurants, supermarkets, convenience stalls and entertainment options are also more expensive.
2. Rent a HDB instead of a condo
When people think about renting in Singapore, they usually think about renting a condo. However, going the HDB route will definitely save you more money.
For example, the monthly rental of a 3-room HDB flat in District 19 (Hougang/Punggol/Sengkang) costs about S$1,500 to S$2,000. In contrast, a 3-bedroom condo in the same district will cost anywhere from S$2,900 up to S$4,000. That’s a difference of more than a thousand dollars every month.
Here are the 2021 Q4 rental statistics from HDB.
| Town | 2-room | 3-room | 4-room | 5-room | Executive |
| Ang Mo Kio | * | $1,900 | $2,300 | $2,600 | * |
| Bedok | * | $1,900 | $2,250 | $2,480 | * |
| Bishan | – | $2,100 | $2,400 | $2,650 | * |
| Bukit Batok | * | $1,800 | $2,100 | $2,250 | * |
| Bukit Merah | $1,680 | $2,000 | $2,670 | $3,000 | – |
| Bukit Panjang | * | $1,600 | $2,000 | $2,200 | $2,100 |
| Bukit Timah | – | * | * | * | * |
| Central | * | $2,300 | $2,800 | * | – |
| Choa Chu Kang | * | * | $2,000 | $2,100 | $2,300 |
| Clementi | * | $2,000 | $2,550 | $2,600 | * |
| Geylang | * | $1,900 | $2,400 | $2,600 | * |
| Hougang | * | $1,800 | $2,150 | $2,250 | $2,500 |
| Jurong East | * | $1,800 | $2,200 | $2,400 | * |
| Jurong West | * | $1,800 | $2,200 | $2,300 | $2,400 |
| Kallang/ Whampoa | * | $2,000 | $2,550 | $2,800 | * |
| Marine Parade | – | $2,000 | $2,480 | * | – |
| Pasir Ris | * | * | $2,100 | $2,200 | $2,300 |
| Punggol | * | * | $2,100 | $2,100 | * |
| Queenstown | * | $2,100 | $2,730 | $3,000 | – |
| Sembawang | * | * | $2,000 | $2,050 | $2,300 |
| Sengkang | * | $1,830 | $2,100 | $2,200 | $2,250 |
| Serangoon | – | $1,900 | $2,300 | $2,500 | $2,680 |
| Tampines | * | $1,850 | $2,200 | $2,400 | $2,500 |
| Toa Payoh | * | $2,000 | $2,500 | $2,600 | * |
| Woodlands | * | $1,800 | $2,000 | $2,100 | $2,300 |
| Yishun | * | $1,800 | $2,000 | $2,200 | $2,450 |
• (-) Indicates that there are no rental transactions in the quarter
• * Indicates that the median rent is not shown because there are less than 20 rental transactions in the quarter for that particular town and flat type
Source: HDB
When renting a condo, it factors in paying for private facilities such as the gym, pool, BBQ pits, jacuzzis etc. However, there’s no point paying for what you won’t use, especially if those facilities aren’t central to your lifestyle. Or, if you’re an avid gym-goer but don’t like swimming, it would be cheaper to rent a HDB and pay for a separate gym membership instead.
Another huge perk of renting a HDB is that it generally has higher accessibility and connectivity. Compared to some condos, HDB flats have many bus stops and train stations located just a stone’s throw away.
In fact, it is one of the mandated guidelines of Land Transport Authority (LTA) for the maximum walking distance to a bus service to be 400m (5-min walk) away.
Amenities such as hawker centres, supermarkets and clinics are also usually within a short walking distance from a HDB flat. You can easily pick up your groceries and other necessities at a lower price.
3. Rent a larger place and get a roommate
Instead of looking for shoebox units, go for a larger place, like a 2-bedroom apartment.
Taking the average rental price of S$4.38 psf in 2021, a shoebox unit of 500 sqft comes up to S$2,190. The rental of a 700 sqft 2-bedder will be $3,066. Split this two ways with your roommate, and you’ll be paying $1,533. That’s a difference of S$657 every month!
Here’s a more detailed rental rundown of all the districts in Singapore. Note that the rent will vary depending on other factors, such as whether the apartment is furnished or unfurnished.
| District | Price (S$psf) in 2021 (1-bedder) | Price (S$psf) in 2021 (2-bedder) | 1-bedder (500sqft) | 2-bedder (750sqft) | 2-bedder (with roommate) |
| 1 | 5.1 | 4.59 | S$2,550 | S$3,443 | S$1,721 |
| 2 | 4.69 | 4.46 | S$2,345 | S$3,345 | S$1,673 |
| 3 | 5.25 | 4.38 | S$2,625 | S$3,285 | S$1,643 |
| 4 | 5.26 | 4.29 | S$2,630 | S$3,218 | S$1,609 |
| 5 | 4.4 | 3.26 | S$2,200 | S$2,445 | S$1,223 |
| 6 | – | – | – | – | – |
| 7 | – | – | – | – | – |
| 8 | 4.81 | 3.9 | S$2,405 | S$2,925 | S$1,463 |
| 9 | 5.23 | 4.98 | S$2,615 | S$3,735 | S$1,867 |
| 10 | 4.39 | 3.79 | S$2,195 | S$2,843 | S$1,412 |
| 11 | 4.26 | 3.99 | S$2,130 | S$2,993 | S$1,496 |
| 12 | 4.66 | 3.74 | S$2,330 | S$2,805 | S$1,402 |
| 13 | 4.46 | 3.37 | S$2,230 | S$2,528 | S$1,264 |
| 14 | 4.23 | 3.32 | S$2,115 | S$2,490 | S$1,245 |
| 15 | 3.91 | 3.34 | S$1,955 | S$2,505 | S$1,253 |
| 16 | 3.82 | 3.05 | S$1,910 | S$2,288 | S$1,144 |
| 17 | 3.35 | 2.43 | S$1,675 | S$1,823 | S$912 |
| 18 | 3.88 | 2.89 | S$1,940 | S$2,168 | S$1,084 |
| 19 | 4.09 | 3.11 | S$2,045 | S$3,444 | S$1,722 |
| 20 | 4.13 | 3.35 | S$2,065 | S$2,513 | S$1,257 |
| 21 | 3.74 | 2.78 | S$1,870 | S$2,085 | S$1,043 |
| 22 | 4.85 | 3.56 | S$2,425 | S$2,670 | S$1,335 |
| 23 | 3.57 | 2.67 | S$1,875 | S$2,003 | S$1,002 |
| 24 | – | – | – | – | – |
| 25 | 3.54 | 2.88 | 1,770 | S$2,160 | S$1,080 |
| 26 | 3.05 | 2.41 | S$1,525 | S$1,808 | S$904 |
| 27 | 3.37 | 2.68 | S$1,685 | S$2,010 | S$1,005 |
| 28 | 3.34 | 2.67 | S$1,670 | S$2,003 | S$1,002 |
From the above table, you’ll notice that the price per square foot for 2-bedroom apartments is also lower than those of 1-bedroom units. This makes it even more economical to share a 2-bedder with a roommate.
4. Sign a longer lease
With rental rates climbing steadily, it’s in your best interest to secure a longer lease with your landlord. Ask your landlord if they would be willing to lower the rent if you can give an upfront deposit of two or three months.
Locking in an extended lease period means enjoying a fixed rental price. You dodge the hassle of having to either look for a new apartment every year or having to re-negotiate with your landlord annually.
Many unexpected costs come with switching apartments, such as taking time to look for a suitable place within your budget, making sure your lease doesn’t overlap with the new apartment, as well as the time and financial costs of packing and moving into an unfamiliar place.
5. Consider your needs when it comes to furnishing
Usually, fully-furnished apartments tend to fetch a slightly higher rental yield. However, consider what you need and the length of your lease term before jumping the gun on a unit.
If you’re leasing for the short-term, it makes more sense to rent a fully-furnished place. Having an apartment that comes with all the furniture and appliances saves you time and money sourcing for furniture that you’ll probably have to sell in a few months.
When I rented my apartment for two years, I went for an unfurnished unit, so I could have the freedom to purchase furniture that would suit my needs. After my lease ended, my landlord agreed to buy the furniture from me at a discount.
Doing so saved me the headache of figuring out what to do with all the furniture I had accumulated over the two years and storage and moving costs that I would have incurred if I had chosen to take my furniture along with me.
Are you a looking to rent in the near future? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, check out Ask these 10 questions when renting in Singapore and Renting on a budget: What you need to know.
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