[2024: Will Singapore’s Rental Market Favour Tenants?]

Just early April last year, headlines were dominated by soaring rents in Singapore, putting the spotlight on tenants' declining affordability and fuelling discussions over an overheating rental market.

However, as past cost drivers—such as construction delays and pandemic-driven demand—gradually subsided, rental growth for residential properties has also moderated.

Source: URA, ERA Research & Market Intelligence

Since Q1 2023, median rental growth for non-landed private residential properties across Singapore has been more subdued.

After growing by 9.9% in 2021, private residential rents in Singapore surged by 27.9% across 2022. However, full-year growth for 2023 slowed considerably to 8.7%.

This comes as welcome news for tenants, as the easing momentum in rental growth could spell less financial pressure ahead.

Source: The Straits Times, 20 December 2023, "Rental occupancy caps eased for HDB, private properties to cool housing rental market."

In addition to an influx of non-landed private properties attaining TOP (projected at 19,000 units in 2023 and an additional 9,800 units in 2024), the recent relaxation of occupancy caps for HDB flats and private residential homes may also help ease upward pressure on residential rents.

From 22 January 2024 to 31 December 2026, up to eight unrelated individuals can rent 4-room or larger HDB flats, as well as private residential properties with a floor area of at least 90 sqm.

By providing breathing room for Singapore's housing supply, this temporary move not only helps stabilise the rental market, but also offers tenants hope for more affordable housing options.

Disclaimer

This information is provided in good faith and does not relieve any party from verifying details from relevant sources and/or seeking professional advice from relevant experts such as valuers, financial advisers, bankers, and lawyers.

For the avoidance of doubt, no responsibility is accepted for the accuracy, reliability, and/or completeness of the information provided above.