HDB rental volume jumped 11.9% in July

Prices inched up by 1%.

The rental volume of HDB flats in July 2018 expanded by 11.9% to 1,932 units compared to 1,726 units in June. Rental volume was up by 3% from July 2017.

According to SRX Property, HDB rents inched up by 1% compared to last month. HDB 3 Rooms and HDB 4 Rooms increased by 1.6% and 1.5% respectively, whilst HDB 5 Rooms and HDB Executive decreased by 0.3% and 1% respectively.

Rents in both mature estates and non-mature estates increased by 1.3% and 0.6% respectively.

On a year-to-year basis, rents in July were down by 1.5% from July 2017. Rents of both mature estates and non-mature estates dipped by 1.2% and 2%.

The HDB rental market continued to show weakness in terms of demand and prices, OrangeTee & Tie head of research and consultancy Christine Sun commented. “The HDB rental market continued to show weakness in terms of demand and prices.”

However, Sun added, “Larger HDB units may continue to see some demand from displaced en bloc owners who are looking for spacious, affordable accommodation whilst they wait for a replacement home. Some may lease slightly longer since the replacement cost of buying a new home is now higher under the new cooling measures, especially for those who own multiple properties.”