Rental market sees private demand rise and public leases weaken

HDB leasing volumes to decline to around 36,500-38,000 units in 2024.

The rental market showed contrasting trends in Q3, as private housing volume increased while public rents weakened.

Citing data from the Urban Redevelopment Authority (URA) rental index, OrangeTee reported that private rental volume rose by 24.4% QoQ to 25,731 in Q3.

HDB rental volume, on the other hand, fell by 4.6% QoQ to 9,118 units.

For the whole year, OrangeTee expects HDB leasing volumes to decrease by around 36,500-38,000 units from 39,138 units in 2023, adding that leasing demand will likely be muted during the year-end holiday season.

"With private rents moderating, we expect some demand to shift from the HDB market to the private market," OrangeTee added.

Meanwhile, OrangeTee expects more leased private homes this year at around 85,000 to 88,000.