Signs of stabilisation in HDB Market as rental growth eases to 10%

In 2022, rents rose by 35% YoY.

The open market rents for HDB flats have stabilised in 2023, with rental growth easing to 10% from a high of 35% in 2022.

The Ministry of National Development (MND) attributed the 2022 rental growth to “the easing of border restrictions and recovery of non-resident rental demand.”

Since then, the government has implemented a suite of measures, including the ramping up the supply of rental flats under the Parenthood Provisional Housing Scheme (PPHS).

“PPHS provides a temporary housing option for families with less income at their disposal to rent a flat while waiting for their HDB flats to be completed,” the MND explained.

To support more families renting HDB flats or bedrooms in the open market, the MND revealed that the government will introduce the PPHS (Open Market) Voucher Scheme, which will run for a year from July 2024.

Under the scheme,  eligible families will receive $300 per month. 

“Given the voucher quantum of $300 per month, eligible families will receive up to $3,600 if they qualify for the full year of support. Families will have the flexibility to select a rental option – whether a whole flat or an HDB bedroom – that suits their budget and needs,” the MND said,

To be eligible for the scheme, families must meet an income ceiling of $7,000 and have had a rental tenancy registered with HDB.

Meanwhile, MND shared that HDB is also working to double the supply of PPHS flats from about 2,000 units to about 4,000 units by 2025.