SINGAPORE: The HDB rental market is on the brink of significant growth, with experts predicting a steady increase in prices throughout 2024 and beyond. As demand surges alongside a decline in available units, the outlook for renters and landlords alike is set to change.

2024 Rental Price Predictions

A recent report from OrangeTee suggests that HDB rental prices will rise by an estimated 2%-3% in 2024. This prediction is backed by a notable 2.9% jump in rental volumes recorded in October, primarily fueled by HDB upgraders temporarily leasing flats to sidestep the Additional Buyer’s Stamp Duty (ABSD). This trend highlights an increasing number of tenants looking for flexibility amidst ongoing economic shifts.

Future Growth Insight

The positive momentum in the rental market isn't just limited to 2024. Experts believe this trend may persist into 2025, with rental prices expected to increase by an additional 2%-4%. According to OrangeTee, the overall improvement in global economic conditions, coupled with a resurgence in expatriate hiring, is anticipated to invigorate the rental landscape in the city-state.

Luqman Hakim, Chief Data and Analytics Officer at 99.co, emphasized that the ongoing shortage of HDB units reaching their minimum occupation period has exacerbated the supply crunch. This limited availability is a primary driver behind the rising rents, with projections indicating that prices could climb by 2% to 3% by the end of 2024.

Market Insights and Comparisons

Huttons, another notable real estate firm, mirrors this optimistic outlook, forecasting a rental price increase of 3%-4% in 2024. They attribute this resilience to continuous shifts in demand and supply dynamics within the HDB sector.

In contrast, the private condominium rental market appears to be stabilizing, with forecasts suggesting a flat performance by the end of 2024. However, this segment could see some shifts as five new private property launches are anticipated in November 2024, potentially leading to some buyers opting to sell and rent in the interim.

Implications for Renters and Landlords

As rental prices are projected to escalate, both renters and landlords should prepare for the upcoming changes. Renters may need to act quickly to secure their ideal units, while landlords can anticipate a favorable market for leasing. Potential tenants will have to navigate a tighter rental landscape and may face increasing competition for desirable flats.

With the rental market poised for these significant changes, it’s crucial for stakeholders to stay informed and proactive in their real estate decisions. Will 2024 be the year of the rental market boom? Only time will tell!