Condo tenants shift to HDB flats due to high rent: experts

More renters might choose cheaper units if private rents remain elevated.

Real estate analysts believe the rental rate in Singapore's condo units decreased as several tenants shifted to cheaper HDB flats due to higher rents.

Data from 99.co and SRX stated that condo rents fell by 0.3% in March 2023.

Lee Sze Teck, Senior Director of Research for Huttons Asia, said that the drop in condo unit rentals saw an increase in tenants resisting higher rents. 

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"More tenants in the condo market are speaking with their feet by moving to the HDB market when the landlords are very insistent on their demands," Lee said.

Cristine Sun, Senior Vice President of Research and Analytics for OrangeTee, said that despite the growing disparity in tenants' expectations, landlords raised their rents to cope with the rising inflation and higher mortgage payments.

Sun then said that the tenants' shift from condo units to HDB flats drove the continued rise of the latter's rents last month.

HDB rents in Singapore rose 0.7% in March 2023 and 26.8% year-over-year. Rents in both mature and non-mature estates climbed by 0.2% and 1.2% percent month-over-month (MoM), respectively. 

Sun expected more condo unit renters to shift downstream to the HDB market if private rents remain elevated.