HDB rents dip 3.4% in Q1 2022

Inflation, however, might push rents to increase by 7-10% for the whole year.

Approved applications to rent out HDB flats dipped by 3.4% to 10,189 units in Q1 2022, data from the Housing and Development Board (HDB) showed.

The decline in rents, however, may not be for long as demand for rentals is being pushed by would-be homebuyers who were priced out of the market and ec flat owners renting in the interim while they wait for the completion of their new flats, property expert, OrangeTee, said.

OrangeTee said they are also seeing renewed demand from returning foreigners, particularly Malaysians and work pass holders, following the easing of s safe management measures are further lifted.

Foreigners would likely rent in areas near the causeway, the northern region (Yishun, Sembawang, and Woodlands), and the western part of Singapore (Jurong), according to the expert.

Lastly, OrangeTee cited escalation inflationary pressures to push rents in the coming months.

"We estimate that overall rents may rise by 7% to 10% in 2022, while volumes may increase to between 46,000- and 48,000- units," the expert concluded.