Moderate HDB rental growth seen in 2024 as leasing activity improves

OrangTee forecasts 2%-3% growth; whilst Huttons 3%-4%.

With an improved demand supported by a constrained inventory of flats and an uptick in leasing activity, experts expect HDB rental prices to remain stable with moderate growth.

OrangeTee expects rental prices to rise by 2%-3% in 2024, boosted by a 2.9% increase in October rental volumes, driven in part by HDB upgraders renting flats temporarily to avoid paying ABSD.

This growth is expected to sustain into 2025, with rental growth projected at around 2%-4%, driven by ongoing macroeconomic improvements, employment growth, and lower interest rates.

“Global growth is expected to remain stable next year, and business sentiment will experience an upturn as business costs are projected to decrease due to the prevailing lower interest rates and brightening economy. These factors will boost expat hiring, which will, in turn, benefit the rental market,” OrangeTee said in a commentary.

For its part, Huttons projects HDB rents to increase by 3%-4% in 2024 and also expects to continue into 2025 with ongoing rental market resilience​.

“The condo rental market could end 2024 flat as demand slowly returns on the back of an improving economy. With an unprecedented 5 private launches in Nov 2024, some buyers might sell their existing property and rent in the interim,” it said.