(Image credit: Anatoliy Shostak on Unsplash)
In August 2023, the rental markets for both Condos and HDBs in Singapore have seen a significant shift. The month recorded a fall in rental volumes for both property types, with a possible cooling observed in HDB rental prices. This article delves into the detailed statistics of the rental market, providing insights into the current trends and potential future movements, including expert comments from the Chief Data and Analytics Officer at 99.co, Mr. Luqman Hakim.
Condo rental market
Rental prices:
- Monthly decrease: Condo rents in August 2023 have decreased by 1.0% from July 2023. The CCR region saw the most significant drop of 1.7%, followed by RCR at 0.7%, and OCR at 0.5%.
- Annual increase: Year-on-year, overall rents have surged by a substantial 17.3%, with OCR leading the increase at 20.1%. Rents in CCR, RCR, and OCR increased by 13.9%, 17.4%, and 20.1% respectively year-on-year.
Mr. Luqman comments that Condo rental price is down by 1%, reverting to the mean that was established in the past 6 months since March 2023. This further confirms that a rental ceiling might have already been reached for the Condo market.
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Rental volumes:
- Monthly decrease: Rental volumes have dipped by 7.6% month-on-month, with an estimated 6,730 units rented in August 2023 compared to 7,287 units in July 2023.
- Annual decrease: Year-on-year, rental volumes are 10.3% lower and 11.6% lower than the 5-year average volume for August.
- Regional breakdown: In August 2023, 36.2% of the total volumes are from OCR, 33.6% from RCR, and 30.2% from CCR.
August is the month where it is natural to see a drop in rental volume in the Condo market following its volume year-high that usually occurs in July. Unlike Condo, HDB rental volume is not that predictable for July and August and for this time, it seems to follow a drop seen in Condo as well, says Mr. Luqman.
HDB rental market
Rental prices:
- Monthly increase: HDB rents have seen a slight increase of 0.1% from July 2023, with both Mature and Non-Mature Estates recording the same increase. 3 Room and 5 Room rents increased by 0.7% and 0.5% respectively while 4 Room and Executive rents decreased by 0.3% and 1.5% respectively.
- Annual increase: Year-on-year, overall rents have surged by 20.8%, with all room types recording rent increases: 3 Room by 18.6%, 4 Room by 21.0%, 5 Room by 22.6%, and Executive rents by 23.4%.
As said by Mr. Luqman, “Despite continuous MoM increases for 3-Room and 5-Room HDBs, the overall marginal increase of 0.1% in August is the lowest in the past two years, suggesting a possible onset of rental price cooling.”.
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Rental volumes:
- Monthly decrease: Rental volumes have decreased by 10.1% month-on-month, with an estimated 2,997 HDB flats rented in August 2023 compared to 3,334 units in July 2023.
- Annual increase: Year-on-year, rental volumes have increased by 16.9%.
- Room type breakdown: In August 2023, the majority of the rental volumes are from 4 Room flats at 37.7%, followed by 3 Room at 32.3%, 5 Room at 24.1%, and Executive at 5.9%.
“Unlike Condo, HDB rental volume is not predictably lower in August, but this time it followed the drop seen in the Condo market”, says Mr. Luqman.
Conclusion
The data from August 2023 highlights a mixed trend in the rental markets for both Condos and HDBs in Singapore. While there is a month-on-month decrease in rental volumes and prices for condos, the year-on-year data shows a substantial increase. The HDB market, on the other hand, sees a slight increase in rental prices but a drop in volumes.
These trends suggest a cautious approach for investors and renters in the coming months, keeping a close watch on the market movements for making informed decisions. The insights from the chief data and analytics officer at 99.co provide a deeper understanding of the market dynamics, aiding stakeholders in making well-informed decisions.
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The post Condo and HDB rental markets dip in volumes in August 2023 appeared first on .
