Private rental transactions likely to fall below the 10-year average in 2023 and 2024

The supply ramp-up of 28,600 new properties has taken a toll on the rental market.

Domestic demand for rental properties will continue to shrink in 2024 and in the remaining months of 2023, according to OrangeTee.

Data from the real estate expert showed that overall rental transactions may fall below the 10-year average of 81,474 units to 75,000-80,000 units in 2023 and 70,000-75,000 in 2024.

“The supply ramp-up of around 28,600 new private residential properties, excluding executive condominiums or EC, completed from 2022 to 2023 has taken a toll on the rental market," OrangeTee.

"This was accompanied by domestic demand contracting sharply as many locals exited the leasing market after moving into their new homes,” OrangeTee added.

Apart from volume, OrangeTee also expects rental prices to slow from the 29.7% increase in 2022 to around 12%-14% in 2023 and 2%-5% in 2024.