HDB, Condo Rentals Decline in November Seasonal Lull

As the year-end approaches, the Singapore property market, particularly the HDB and condominium (condo) rental sectors, is experiencing a seasonal lull. In November 2024, both HDB and condo rental volumes in Singapore declined, aligning with the typical year-end slowdown in leasing activity, as reported by 99.co and SRX. Despite this drop in volumes, rental prices for both markets increased slightly, indicating stable demand. Let's delve into the details and explore the factors contributing to this trend.



In November 2024, condo rental prices rose by 0.2% month-on-month (MoM), driven by a 0.8% increase in the Outside Central Region (OCR). However, prices in the Core Central Region (CCR) and Rest of Central Region (RCR) fell by 0.6% and 0.1%, respectively. Year-on-year (YoY), overall condo rental prices declined by 1.3%, with CCR and RCR experiencing decreases of 2.4% and 1.4%, respectively. Rental volumes decreased by 12.4% MoM, with an estimated 5,010 units rented in November 2024 compared to 5,712 in October 2024. YoY, rental volumes were 0.8% higher, but 10.1% lower than the five-year average for November.



The decline in HDB and condo rental volumes in November 2024 can be attributed to several factors. Firstly, the seasonal lull in leasing activity, as is typical for the year-end period, contributed to the decrease in rental volumes. Secondly, the ongoing economic uncertainties and geopolitical tensions may have deterred potential tenants from entering into new lease agreements. Lastly, the rising interest rates and wage inflation could have made rentals less affordable, leading to a decrease in rental volumes.

Looking ahead, the rental market is expected to remain stable, with rental prices continuing to increase slightly. However, the pace of rental price increases may slow down due to the ongoing economic uncertainties and geopolitical tensions. Additionally, the labor market dynamics and wage inflation may continue to impact the rental market, with fewer people working and higher wages potentially leading to a decrease in rental demand. To mitigate these risks, landlords and property owners may need to offer more competitive rental prices and incentives to attract tenants.

In conclusion, the HDB and condo rental markets in Singapore experienced a seasonal lull in November 2024, with rental volumes declining and prices increasing slightly. This trend can be attributed to various factors, including the seasonal lull in leasing activity, economic uncertainties, and geopolitical tensions. As the market moves forward, landlords and property owners should remain vigilant and adapt their strategies to attract tenants and maintain stable rental demand.