Condo rental prices drop for second consecutive month

Despite a notable decline in September’s condo rental volumes, there was a subtle increase in condo rental prices.

In this article, we delve into the trends that shaped Singapore’s housing market in September, focusing on both HDB and condo rental prices. These insights shed light on the evolving preferences of renters and the changing dynamics in the housing sector.

Overview of September’s rental market

According to Mr. Luqman Hakim, Chief Data & Analytics Officer, “September’s rental volume continued to decline for the second consecutive month despite stable demand on our portal. Tenants are becoming more discerning about rental prices and their lease agreements.” 

He highlighted a significant shift in tenant preferences, reflecting a more cautious approach towards housing decisions.

SPI for Condo Rental prices September 2023 - condo rental prices drop

Condo rental market

In September 2023, condo rental prices experienced a subtle decline, dropping by 0.5% compared to August 2023.

“We saw that it hit a ceiling in July 2023. After 2 consecutive months of a rental price decrease, it remains to be seen if we will see a lower rental ceiling”, noted Mr. Hakim.

This change varied across regions: rents in the Core Central Region (CCR) increased by 0.5%, rentals in the Rest of the Central Region (RCR) decreased by 0.2%, and Outside Central Region (OCR) rents witnessed a 1.3% drop.

Rental volumes followed a similar trend, witnessing a 15.2% month-on-month decrease. The detailed breakdown revealed that 35.7% of total volumes came from OCR, 33.1% from RCR, and 31.1% from CCR.

Year-on-year data shows an overall increase of 13.9% in rents from September 2022. CCR, RCR, and OCR rents increased by 11.1%, 14.9%, and 15.7% respectively during the same period.

Read more: Condo and HDB rental markets dip in volumes in August 2023

Here is an overview of the condo rental price changes, year-on-year changes, and the distribution of rental volumes across CCR, RCR, and OCR in September 2023: 

Region Rental price change (%) Rental volumes (%) Year-on-year change (%)
Core Central Region (CCR) +0.5 31.1 +11.1
Rest of Central Region (RCR) -0.2 33.1 +14.9
Outside Central Region (OCR) -1.3 35.7 +15.7


HDB rental volume September 2023 - condo rental prices drop

HDB rental market

Contrastingly, HDB rental prices continued their upward trajectory, increasing by 0.4% in September 2023. 

This trend was particularly prominent in 5-room flats, which saw a 2.1% rise in rents. Mr. Luqman Hakim noted, “Premium HDB flats are gaining popularity among renters seeking spacious living spaces at more affordable rates compared to condos.”

Compared to last month, rental volumes for HDB flats showed a 7.8% decrease, with 32.8% of the total volumes coming from 3-room flats, 37.4% from 4-room flats, 24.3% from 5-room flats, and 5.5% from Executive flats.

Breaking down the numbers, September 2023 observed a 0.3% increase in both Mature and Non-Mature Estates rents, with 3-room and 4-room flats experiencing a 0.1% rise. Additionally, Executive rents decreased by 0.8%. 

Year-on-year data indicated an 18.2% overall increase in HDB rents, with 3-room, 4-room, 5-room, and Executive rents rising by 15.7%, 18.2%, 21.6%, and 19.5% respectively.

This table summarises the HDB rental price changes, and the distribution of rental volumes across different room types:

Room type Rental volume distribution for September (%) Year-on-year change (%)
3-Room 32.8 +15.7
4-Room 37.4 +18.2
5-Room 24.3 +21.6
Executive 5.5 +19.5


Wrapping up

In summary, September marked a notable shift in the rental landscape. While condo rental prices experienced a slight decline, HDB rents continued their upward trend, driven by the appeal of spacious living in premium HDB flats. Tenants are becoming increasingly selective, considering not just the price but also the value they derive from their rental agreements.

As the market navigates these changes, it remains to be seen how landlords and property seekers will adapt to this evolving landscape. Keeping a close eye on these trends will be essential for making informed housing decisions in the coming months.

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