HDB rental cause of price index surge: PropertyGuru

The RPI for HDB flats for Q4 2021 is at 174.34 points, compared to the overall score of 137.40.

PropertyGuru's Singapore Property Market Report Q1 2022 features three statistical indices for property sale and rental prices, supply and demand. This is further supplemented by historical transaction data provided by the Urban Redevelopment Authority (URA) and the Housing Development Board (HDB).

The report showed the rental price index (RPI) for HDB flats for Q4 2021 was at 174.34 points, compared to the overall score of 137.40. The strong demand was driven by those who are renting whilst waiting for their homes to be completed, as well as single Millenials and couples wanting to move out of their family homes. At the same time, the narrowing in the rental price gap between HDB flats and non-landed private properties have caused a spillover, pushing those who have rented HDB flats to rent non-landed private property instead.

Moving forward, PropertyGuru expects a robust property market in Q1 2022 as the shock of property curbs, interest hikes, and construction delays ease. Property seekers will also be unlikely to be affected by the Monetary Authority of Singapore's higher rate of 3.5% in computing debt ratios.