HDB rents grew 0.3% in January

HDB 5-room rental rates inched up 1.2%.

Rents for Housing and Development Board (HDB) flats saw a flattish growth of 0.3% MoM and YoY in January, SRX Property revealed. HDB 5-rooms led the rent hikes as rates rose 1.2% MoM.

The firm noted that HDB 4-Rooms (0.3%) and HDB Executive (0.7%) also saw rental increases compared to their rates in December. Meanwhile, rental rates for HDB 3-Rooms dipped 0.8% MoM.

In mature estates, rents inched up 0.6% MoM whilst rates in non-mature estates dipped 0.1% MoM, SRX Property noted. They added that rental rates for HDB flats were down 15.1% in January compared to their peak in August 2013.

Also read: Here are the top spots for Singapore's upscale HDB flats

SRX Property noted that the HDB rental volume climbed 7.2% MoM to 1,864 flats in January from 1,738 units rented in December. On a YoY basis, rental volumes decreased 3.8% compared to the 1,937 units rented in January 2018.

According to OrangeTee & Tie head of research and consultancy Christine Sun, home seekers may look forward to new rental hotspots that may emerge such as Punggol and Sengkang, where more than 10,000 flats will be reaching their minimum occupation period (MOP).

“With more flats being put up in the market for rental, rents may correct by 1 to 3% this year, whilst leasing volume may rise to between 55,000 and 56,000 this year,” Sun commented.