Rental demand for HDB and private non-landed residential declines in Q2
PropertyGuru sees expatriates’ rental demand to be slower due to low expansion.
The Singapore Property Rental Demand Index declined 14% quarter-on-quarter (QoQ), which marked the second consecutive quarter where number of enquiries declined, PropertyGuru said.
The Rental Demand Index for non-landed private property fell 13.2% QoQ. Following the same trend, the Rental Demand Index for HDB flats experienced a decline of 21.2% QoQ, indicating lower interest levels.
With the construction of 40,000 private and public homes seen to be finished in 2023, the increased supply will provide tenants with more housing options.
This also means the number of locals renting as an interim solution whilst waiting for their homes to be completed will lessen, said PropertyGuru.
Rental demand from expatriates is likely to grow slower as firms are expected to scale back their expansion plans, and expatriates continue to return home, resulting in a smaller tenant pool.