Asking prices of rental properties drop since 2018: report

Property Guru said the rental index fell 2.9% QoQ in Q3 2023.

The Singapore Property Rental Index fell by 2.9% QoQ, posting the first decline since 2018, said PropertyGuru. 

Data from the property analyst also showed that Singapore Property Rental Demand Index declined by 7.2% QoQ, marking the third consecutive quarter with a decrease in enquiries. 

This was attributed to the completion of more condo units and BTO flats which has reduced local demand, and the hiring slowdown of expatriate workers due to uncertain economic conditions.

The Rental Supply Index for HDB flats documented a 30% QoQ increase, recording the second straight quarter of growth in the number of available listings. 

Meanwhile, the Rental Supply Index for non-landed private property recorded a QoQ increase of 24.1%. The injection of 15,221 private residential units including executive condos, expected to receive their Temporary Occupation Permit in the final three quarters of 2023, will likely exert further downward pressure on rental prices.

“Although landlords are likely to keep asking rents high, economic conditions could further push prices down. However, the pace of rent easing will likely be gradual and asking rental prices may go sideways,” said PropertyGuru.

HDB resale flat slowed down in Q2

Growth in asking prices for HDB resale flat listings decelerated in Q2 2023, with the Singapore Property Sale Price Index for HDB resale flats posting a 0.6% QoQ increase compared to a 1.6% QoQ increase in Q1 2023. 

Property seekers are less pressured to meet the high prices as they have more choices including more BTO flats being completed, and a surge of about 16,000 flats are set to fulfil their Minimum Occupation period this year.

The Singapore Property Sale Demand Index for HDB resale flats declined by 6.4% in Q2 2023, whilst the Sale Supply Index for HDB resale flats remained stable with a 0.1% increase.

“The Sale Demand Index can be interpreted as an early indicator of market trends, reflecting buyer interest at the beginning of their property search. Hence, it hints that the HDB resale property market may have reached its peak,” PropertyGuru said.