HDB rents up 0.8% in January

Three-room flats saw the highest growth for the month.

HDB rents posted a 0.8% jump in January MoM, according to a report by SRX. HDB rents grew 2% YoY.

Rents for the month were a 13.5% slump from its peak in August 2013.

All room types saw an increase in rents for the month. Rents for three-room types grew 1.7%, five-room rents inched up 1.6 %, whilst four-room rents advanced 0.6%.

Mature Estates and Non-Mature Estates rents, on the other hand, increased by 0.7% and 0.9% respectively, according to Town Maturity.

On YoY basis, three-room rents expanded 3%, four-room rents jumped 1.3%, whilst rents for five-room types increased by 1.6%. Rents for executive types advanced by 2.7%. Meanwhile, Mature Estates and Non-Mature Estates rents grew YoY by 1.4% and 2.6%, respectively.

"The stronger rental prices came on the back of fewer private homes being completed last year and some stock removed to make way for new housing units," noted Christine Sun, head of research at Orange Tee & Tie. 

In terms of volumes, HDB flats fell 5.1% MoM. An estimated 1,653 HDB flats were rented in January, compared to the 1,741 units in December 2019.

Volumes in January were 14.4% lower than the 5-year average volume for the month.

Rental volumes similarly dropped on a YoY basis by 22.5%

Breaking down by room types, four-room flats accounted for 35% of total rental volume for the month. About 34.7% came from three-room types, 24.5% from five-room, whilst Executive flats made for 5.7% of volumes.

Sun notes that the shrink in HDB rental volume could be attributed to the rising rental prices.

"There were also lesser Flat viewings for potential renters as landlords were on a break amidst the Lunar New year holidays," added Sun.