Tenants Most Favour Core Central Region! Districts 9 and 10 Private Homes Most Popular

In the first half of 2024, the Core Central Region (CCR) emerged as the most attractive segment in Singapore's non-landed private residential rental market, with prime private homes in Districts 9 and 10 being the most sought-after.

According to the report, District 9 recorded 3,904 non-landed rental contracts in 1H 2024, the highest across the island. Districts 10 and 15 followed closely behind, clocking 3,463 and 3,375 rental transactions respectively.

These figures underscore the sustained appeal of these prime locations among tenants.

Other areas registering over 2,000 non-landed rental contracts in the first half included Districts 19, 5, and 14.

At the project level, tenants exhibited a strong preference for brand-new units. Developments that registered the highest rental volumes in 1H 2024 were those that recently obtained their Temporary Occupation Permit (TOP), including Normanton Park, Treasure at Tampines, Parc Clematis, and The M.

Rents Soften While Leasing Volume Climbs

Earlier data released by the Urban Redevelopment Authority (URA) revealed that the overall rental index slipped by 0.8% quarter-on-quarter in Q2, moderating from the 1.9% contraction in Q1. Across the first half of the year, overall rents dipped by 2.7%, marking a notable turnaround from the 10.2% surge recorded in 1H 2023.

Even as rents softened, leasing transaction volume picked up. URA figures showed that non-landed rental contracts rose from approximately 18,878 in Q1 to 19,558 in Q2, representing a 1.9% quarter-on-quarter increase. The report noted that this trend was likely driven by the rental market absorption of the 19,968 private residential units (excluding Executive Condominiums) completed in 2023.

For the entire first half of 2024, non-landed rental volume rose by 2.4% year-on-year to reach 38,436 contracts.

This increase reflects resilient underlying demand for non-landed rental housing. Full-year non-landed rental contract volumes are projected to range between 78,000 and 80,000.

Primary 1 Registration May Influence School-Zone Private Rents

Additionally, the report observed that the Primary 1 (P1) registration exercise may have supported private residential rents within a 1km-to-2km radius of popular primary schools. Citing Holy Innocents' Primary School as an example, the study revealed that rental rates at nearby developments Simon Plaza and People's Garden surged by 28.8% and 11.1% year-on-year respectively in 1H 2024.

Nonetheless, P1 registration does not invariably drive up rental rates for all neighbouring private homes.

An analysis of private residential rental transactions within 1 km of five renowned primary schools—Rosyth School, Chongfu School, Tao Nan School, Princess Elizabeth Primary School, and Nan Hua Primary School—showed that private homes around the first three outperformed their respective district averages, while those near the latter two lagged behind.

Overall, the influence of P1 registration on rents appears less pronounced than its impact on resale prices. This is likely attributable to the Ministry of Education's (MOE) requirement mandating that applicants must reside at the registered address for at least 30 months, leading many parents to purchase rather than rent.