Every quarter, The Housing & Development Board (HDB) and The Urban Redevelopment Authority (URA) releases a comprehensive database of rental transactions for both the private and public housing segment. Ohmyhome analyses this huge chunk of data and picks out the most relevant points and trends for readers.
Table of Contents
- HDB rental volume increases by 99% in 2021
- 3-room flats had the highest rental increase
- Highest rental surge for 3-room flats in Woodlands
- Highest private rental volume in the past 5 years
- Overall private rents rise by 9.9% in 2021
- The Sail @ Marina Bay garners the most rental demand in 2021
- Rental outlook for the private and public housing market
HDB rental volume increases by 9.9% in 2021
The number of rental applications for HDB flats increased from 10,417 units in 3Q 2021 to 10,551 units in Q4 2021, resulting in a 1.3% surge. For the entirety of 2021, 42,623 rental units were registered. This accounted for a 9.9% increase to the 38,798 units in 2020.
The increase in rental demand has been in tandem with the number of HDB resale transactions as well.
Demand was driven by couples who were waiting for their new Build to Order (BTO) flats to be completed, in light of construction delays. With the introduction of Vaccinated Travel Lanes (VTLs), demand also came from returning Singaporeans, PRs and foreigners as well.
3-room flats had the highest rental increase
Median rental rates for HDB flats saw an increase across the different flat types in 2021, with a higher increase for 3-room flats, accounting for 5.6%. 3-room flats are ideal for people who are looking for interim or short-term stay.
Highest rental surge for 3-room flats in Woodlands
3-room flats at Woodlands had the highest rental increase, with a 20.0% change in rental rates between 1Q21 and 4Q21. This was as a result of over 32% of the rental volume consisting of 3-room HDB flats.
Highest private rental volume in the past 5 years
Similarly, for the private new sale and resale transactions on the whole of 2021, there were a total of 98,179 rental contracts (excluding ECs) This was 6.1% higher than the 92,537 rental volume of transactions in 2020 — the highest number of rental volumes in the past 5 years. Overall rental demand in 2021 was bolstered by the easing of travel restrictions and return of foreigners to Singapore.
Overall private rents rise by 9.9% in 2021
Overall rents have risen exponentially for the whole of 2021 as rents rose by 9.9% in 2021 as compared to the -0.6% decline in 2020. Favorable rental demand has boosted rents in 2021.
The Sail @ Marina Bay garners the most rental demand in 2021
The Sail @ Marina Bay had the most number of rental transactions in 2021, with a total of 739 rental contracts. It is likely fuelled by expats who are working in the Central Business District, and wish to be in close proximity to their offices.
Rental outlook for the private and public housing market
Rental demand for the public and private housing market may continue to strengthen this year.
Demand will be driven by property buyers who are looking for interim alternatives, while waiting for their properties to be completed, whether it is a BTO flat or a private property. This is especially true when a newly-married couple wishes to live together while waiting for the units to be completed.
With companies in sectors such as Information Technology (IT) and logistics ramping up their hiring, it is likely we would see more foreign expats, Singapore Permanent Residents and employment pass holders return to Singapore.
As over 60% of the population have received the booster shots, the country is on track to tackle the existing omicron variant. This will in turn boost confidence for these groups of people as well.
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