Private home rentals to rise by 11%-12% in 2023

Next year, prices could grow by 6%-8%.

Rental rates of private homes will likely record a full-year growth of 11%-12%, PropNex said.

In a report, PropNex said rental rates have already climbed by a cumulative 11.1% in the first nine months of 2023 (9M23).

“As rents crept higher, there may be rental price resistance among tenants leading to more muted leasing transactions,” PropNex warned.

The real estate expert said the robust growth in private home rentals has already diverted some budget-conscious tenants to the HDB leasing market.

In 2024, Propnex expects rentals to grow by 6%-8%. 

“With oncoming supply completions, some locations may see more readily available rental stock and this could potentially give tenants more bargaining power,” PropNex commented.