Significant increase in house supply drags private rental price growth

In October, rents declined by 0.2% MoM.

With more condominiums being completed over the past year, private rental prices remain stagnant for the eighth consecutive month in October.

“The sluggish rental price growth can be attributed to a significant increase in housing supply,” OrangeTee said.

Rental volumes have likewise been on a downward trend, marking its third consecutive month of decline in October.

“This trend is expected to persist over the next two months due to the year-end holidays,” said OrangeTee.

In 2024, the private residential market will continue to experience a further slowdown as domestic demand continues to contract. 

“Approximately 10,000 more private homes are slated for completion, adding more housing supply next year. The increase in supply and lower demand may further add downward pressure on rental prices,” OrangeTee said.

OrangeTee said rental price growth will likely moderate to around 2-5% next year, down from 29.7% in 2022 and 12-14% in 2023.