January HDB Rental Volume Rises Amidst Price Dip

In January 2025, the HDB rental market witnessed an unexpected surge in rental volume, despite a slight dip in prices. This trend can be attributed to several factors, including increased supply of flats, HDB upgraders, financial challenges faced by applicants, and the mobility and flexibility offered by renting. The HDB Public Rental Scheme, which provides heavily subsidised housing options for Singapore Citizen (SC) households, also contributed to the rise in rental volume.

The HDB rental market in Singapore has seen significant changes in recent years, with rental prices hitting all-time highs. The HDB Public Rental Scheme, designed to provide affordable housing options for SC households, has been a key driver of this growth. The scheme offers different flat types and locations, with rental rates determined based on income, the flat, and the applicant's status.

In January 2025, the rental volume increased significantly, with more flats being available for rent. This can be attributed to the increased supply of flats, as HDB launched over 5,000 BTO flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. Additionally, there was a large SBF exercise with more than 5,500 flats across various towns/estates. This increased supply of flats contributed to the higher rental volume.

HDB upgraders also played a significant role in the rise in rental volume. Some of the buyers of these new flats were HDB upgraders who may sell their flats and rent in the interim to avoid paying the Additional Buyer's Stamp Duty (ABSD) on a second property. This led to more flats being available for rent, further boosting the rental volume.

Financial challenges faced by applicants also contributed to the increase in rental volume. The HDB Public Rental Scheme offers financial support for applicants facing financial challenges, allowing them to rent HDB flats at subsidised rates. This financial assistance attracted more applicants, leading to a higher rental volume.

The mobility and flexibility offered by renting also contributed to the rise in rental volume. Renting HDB flats allows tenants to work closer to jobs, increase commuting time, and improve work-life balance. This benefit, along with the affordability of HDB flats, attracted more tenants to the rental market, further boosting the rental volume.

In conclusion, the rise in HDB rental volume in January 2025 can be attributed to several factors, including increased supply of flats, HDB upgraders, financial challenges faced by applicants, and the mobility and flexibility offered by renting. The HDB Public Rental Scheme has been a key driver of this growth, providing affordable housing options for SC households. As the HDB rental market continues to evolve, it is essential to monitor these trends and adapt to the changing landscape.