The Singapore rental market in November 2024 navigated its usual year-end dip in activity with surprising price resilience. While rental volumes for both condos and HDB flats declined due to the festive season, both rental prices defied the trend by inching upward.
Growth in condo rental prices signs a continued recovery following a downtrend in the first half of the year. Meanwhile, the surge in HDB rental prices has resulted in a total increase of 4 per cent year-to-date.
This article provides an in-depth analysis of November’s rental market activities and price trends, offering a forward-looking perspective on 2025.
Condo rental market: Prices continue to stabilise
In November 2024, condo rental prices edged up by 0.2 per cent month-on-month, signalling a recovery following a softening trend earlier in the year.
This increase was largely driven by the Outside Central Region (OCR), where rental prices climbed by 0.8 per cent, offsetting declines of 0.6 per cent and 0.1 per cent in the Core Central Region (CCR) and Rest of Central Region (RCR), respectively.
Year-on-year, however, condo rental prices remained subdued, registering a 1.3 per cent decline compared to November 2023. Rental prices in CCR, RCR, and OCR all fell year-on-year, reflecting decreases of 2.4 per cent, 1.4 per cent, and 1.5 per cent, respectively.
Rental volumes for condos dipped significantly in November, down by 12.3 per cent from October 2024. Approximately 5,010 units were rented, compared to 5,712 units the previous month. This was not unexpected, given the seasonal slowdown.
However, year-on-year volumes showed a marginal 0.8 per cent increase, underscoring the sustained demand for rental properties.
In terms of regional distribution, OCR accounted for the largest share of rentals at 36.3 per cent, followed by RCR with 33.6 per cent and CCR with 30.2 per cent. These figures suggest that affordability in the OCR continues to attract a substantial share of tenants.
HDB rental market: 4.2% price increase year-on-year
The HDB rental market also saw prices increase in November, with a month-on-month rise of 0.4 per cent. Rentals in Non-Mature Estates led the growth with a 0.5 per cent increase, while Mature Estates posted a 0.2 per cent uptick.
Among room types, 4-room flats saw the highest price growth at 1.3 per cent, while 5-room and Executive flats experienced declines of 0.7 per cent and 1 per cent, respectively.
On a year-on-year basis, HDB rental prices increased by 4.2 per cent compared to November 2023, with gains recorded across all flat types. The strongest price growth was observed in 3-room flats, which saw a 5.1 per cent rise, while 4-room, 5-room, and Executive flats grew by 4.1 per cent, 2.8 per cent, and 3.6 per cent, respectively.
Rental volumes for HDB flats fell sharply, down 13.8 per cent month-on-month and 20 per cent year-on-year. An estimated 2,155 flats were rented in November, significantly lower than the five-year average for the month.
This decline in volumes is likely attributable to the year-end slowdown, as many tenants and landlords deferred rental activities.
Room type preferences remained stable, with 4-room flats making up 38.1 per cent of total HDB rentals, followed by 3-room (32.7 per cent), 5-room (24.1 per cent), and Executive flats (5.1 per cent).
Rental market outlook for 2025: Price growth expected to continue
Condo and HDB rental prices continue to surge in November 2024 despite the year-end market slowdown.
As 2024 draws to a close, the rental market’s performance in November highlights the resilience of both condo and HDB segments despite the seasonal slowdown. With condo rental prices showing signs of recovery and HDB rentals remaining an affordable option for tenants, the market is poised for further growth.
An improving economic outlook and declining interest rates are likely to drive rental demand in 2025. For condos, the OCR’s affordability and continued attractiveness to tenants could sustain price increases. In the HDB market, flats in Non-Mature Estates are expected to see steady demand as value-seeking tenants look for cost-effective housing options.
With a strong foundation established in 2024, the Singapore rental market appears set for a dynamic year ahead, driven by affordability, location preferences, and broader economic trends.
[[nid:699681]]
