Why HDB rental transactions dropped in November

In November, the number of HDB flats rented fell by 15.2% MoM.

The HDB rental market has started to feel the effect of the seasonal slowdown, with volumes dipping 15.2% MoM to 1,691 flats in November.

According to Huttons, demand for HDB rental flats will likely contract in December and only pick up after the holiday season.

Apart from the seasonal slowdown, OrangeTee said HDB rental volumes may have been affected by the non-renewal of Malaysians.

“The drop in HDB rental transactions could be due to more Malaysians not renewing their lease and going back to their daily commute across the Causeway,” OrangeTee said.

In 2023, OrangeTee said the hiring slowdown in some sectors will likely reduce demand for HDB rental flats.

Year-on-year, rental volumes were down by 10.0% in November. Of the total HDB flats rented, 37.7% were 3 Room, 4.6% were 4 Room, 22.7% were 5 Room and 5.0% were Executive.