SINGAPORE – Rents for Housing Board flats and condominium units continued to climb in December, ensuring that 2022 ended as a landlords’ market, though some analysts note that an upcoming increase in units in 2023 may slightly ease the pinch felt by tenants.
Condo rents rose by 3 per cent in December, compared with November’s 2.8 per cent, with those in central Singapore growing at the fastest pace of 3.9 per cent, according to flash figures released on Tuesday by property portals 99.co and SRX.
HDB rents went up by 2.8 per cent in December, a faster pace than November’s 2.5 per cent.
This marks the 24th straight month of growth for condo rents and the 30th for HDB rents. Overall in 2022, condo rental prices increased by 34.4 per cent, while HDB rents went up by 28.5 per cent.
While rents are unlikely to fall drastically in 2023, some tenants could get a respite as the supply of rental units is expected to increase, following the completion of more homes in the light of the construction industry’s steady recovery since the Covid-19 pandemic, said some property analysts.
One Global Group senior analyst Mohan Sandrasegeran said that around 15,000 HDB flats are expected to complete their mandatory five-year minimum occupation period in 2023, which would allow owners to rent them out.
As some 20,000 Build-To-Order (BTO) flats are expected to be completed in 2023, they might also gradually alleviate pressure on the rental market from those owners who are renting in the interim, he added.
“An increase in supply can lead to more options for renters, which can in turn gradually lead to more moderate rental prices,” said Mr Sandrasegeran.
“Source:[Condo, HDB rents climb again in December; slight easing possible in 2023 as supply rises] © Singapore Press Holdings Limited. Permission required for reproduction”
