Condo, HDB rental volumes drop double digits in April

Volumes declined by 21.0% MoM and 20.7% MoM, respectively.

Condo and HDB rental volumes both dropped double digits in April, declining by 21.0% MoM and 20.7%, respectively. On a year-on-year comparison, volumes dropped by 28.9% for condos and 24.5% for HDB.

According to 99.co and SRX, only 3,551 condo units and 1,382 HDB flats were rented in April.

The latest figures for both markets are also lower than their respective five-year average volume for April by 23.2% for condos, and 28.0% for HDB. 

Of the total condo units rented, 38.1% were from the OCR, 32.0% from RCR, and 29.9% from CCR.

Meanwhile, most of the HDB flats rented were 3 Room (37.4%), followed by 4 Room (36.7%), 5 Room (21.9%), and Executive (4.1%).

OrangeTee said the fall in leases for both markets could be attributed to factors such as the "very low" available units for rent.

Whilst volumes for the month decreased, rents for both markets saw an uptick with condo and HDB rents climbing 2.3% MoM and 1.9%, respectively.

Huttons said the increase in rents for both markets was buoyed by stronger rental demand from foreigners amidst the reopening of Singapore's borders.

HDB rents were particularly supported by Malaysians who were "unsure whether the borders will stay open indefinitely," according to Huttons.

"They are adopting a wait and see attitude and renewing their lease for a short period of time," the property expert added.

Looking ahead, Huttons said Singapore's continued economic growth will eventually lead to more rental demand for condos and HDB which will then push rents by another  10% or more for the rest of 2022.