Rents increase amidst narrowing housing supply: OrangeTee

Rental volumes fall, rents  are on the rise, and more people are choosing to buy permanent homes.

Rental volume fell by 100 units each for both HDB and private residential markets in April.

On the same month, condo resale volumes smashed an 11 year record, with an estimated 1,993 units sold.

This led to the 11th straight month of rent increases for HDB units, and a fourth straight month for condominium units, both higher by 1.3% in April.

OrangeTee Senior Vice President of Research & Analytics Christine Sun said demand has been outstripping supply for rental units, causing rents to rise.

"Many locals have been renting units in recent months. These include HDB upgraders who have sold their flats recently to take advantage of the rapidly rising resale prices. Some HDB upgraders are renting a unit in the interim while they scout for a more permanent replacement home. Others include young executives who have moved out from their families to enjoy more space and privacy since they now have to work remotely for a longer period of time," Sun said.

The reimplementation of a 5-person limit per day for the number of household visitors may also negatively affect the rental market, as fewer physical viewings can be conducted.