HDB rental volume jumps 12.3% as activity rebounds in Q1

The number of approved applications to rent out HDB flats jumped by 12.3% to 9,662 units in Q1 2025.

Singapore’s HDB rental market rebounded sharply in the first quarter of 2025, reversing a three-quarter slump in rental activity.

According to OrangeTee’s latest report, the number of approved applications to rent out HDB flats jumped by 12.3%, rising from 8,603 units in Q4 2024 to 9,662 units in Q1.

“The uptick in HDB rental volume is expected,” the report stated, “as rental activities usually pick up after the year-end holidays and festive season.” The recovery comes after back-to-back quarterly declines of 5.6% in Q4 2024 and 4.6% in Q3 2024.

Whilst activity levels picked up, rental prices remained largely stable. According to the SRX-99.co HDB rental price index, HDB rents rose by 0.1% in Q1 2025, a notable slowdown from the 1.3% increase seen in the previous quarter.

OrangeTee pointed to multiple factors supporting continued rental demand, including the “noticeable rise in foreign students and expats returning to Singapore,” which is likely driven by the country's stable employment prospects and easing inflation pressures.

Looking ahead, OrangeTee suggested that a limited housing supply may create slight upward pressure on rents throughout the rest of the year. “We may continue to see slight upward pressure on HDB rents this year due to the limited supply of flats reaching their Minimum Occupation Period (MOP),” the report noted.

However, the rental market remains competitive. “Some landlords were also more flexible and open to negotiate rents, given the intense competition for tenants from the private rental market,” OrangeTee observed.

Overall, the firm expects HDB rents to increase modestly, projecting a 2% to 4% rise for the full year of 2025.