Singapore’s residential property market saw sky-high rental rates across the board at the start of 2023 as the global economy opened up post-Covid and foreign investment started flowing back in with the return of expats. The question on everyone’s minds now is: Will rental prices finally drop in 2024?
A look back at the 2023 condo rental market
In 2023, the average rental price for a 3-bedroom condo in the Core Central Region (CCR) reached a peak of $8,522 in July.
As a result, we saw condo rental demand and prices fall considerably.
2023 Average Condo Rental Prices and Rental Volume in the CCR
With the rising rental prices in the CCR, many tenants have chosen to move to the Rest of Central Region (RCR). You can probably guess what happened next:
As rental demand grew for RCR properties, prices began to trend upwards.
However, unlike in the CCR, rental prices in the RCR remained strong — hovering around $6,200 for a 3-bedroom unit.
On the other hand, rental prices in the Outside Central Region (OCR) decreased steadily.
Overall Condo Rental Prices and Rental Volume in 2023
Despite the price hikes we saw in the OCR and the RCR in 2023, overall rental demand for the whole island fell.
What to expect in Singapore’s 2024 condo rental market
With lower rental demand, we can expect to see rental prices stabilise in the CCR and RCR. This means HDB owners looking to achieve the Singapore dream of selling their resale flat and buying a new condo (or at least a good-sized resale one) may now be able to afford it.
That said, the outward pressure caused by the sustained high condo rental rates in the RCR could lead to higher demand and prices in the OCR.
And if economic conditions were to remain uncertain and high interest rates persist, foreign investment may drain away, particularly for luxury homes and condos in the central region. So those looking to rent out their home in 2024 may be faced with lower demand and thus, lower rental prices, in the market.
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