HDB and condo rental markets stabilise as tenant demand softens

Experts said demand will continue to taper off for the rest of the year.

The HDB and condo rental markets are showing signs of stabilising, as seen in the September figures. 

Experts said this is largely driven by reduced tenant demand.

"There was slightly lower demand due to a cautious employment market. The number of closures in the F&B industry for the first nine months of 2024 has exceeded the whole of 2023," Huttons said.

"Some tenants have moved into their newly completed condos or HDB flats and are not renewing their leases," Huttons added.

OrangeTee expects demand to continue to taper off for the rest of the year, particularly during the year-end period when leasing activities tend to be much slower. 

The falling interest rates, however, will positively impact both the private and HDB rental markets, said Orangetee.

" Lower borrowing costs will enhance business sentiment and contribute to employment growth, including a possible increase in expatriate hiring," the expert said.

"Additionally, landlords may be more willing to negotiate lower rents, as their home mortgage costs are likely to decrease when they refinance in the future," it added.

Huttons expects the conto rental market to end flat in 2024 as demand slowly returns.

"There are more new project launches in Oct and Nov 2024. Some buyers of these new projects might sell their existing properties and rent in the interim," Huttons said.

" This may provide some support to the HDB rental market and HDB rents could increase between 2% and 3% in 2024," it added.