The rising cost of living in Singapore has not spared the Housing and Development Board (HDB) rental market. With an ever-increasing demand for housing, coupled with a limited supply, HDB rental prices have been steadily climbing. This has put a strain on tenants, especially those from low-income households. To make matters worse, there are many factors behind the escalating costs of HDB rentals. But there’s still hope for tenants looking to save on their rental costs. In this article, we will explore the forces driving up HDB rents and provide some valuable tips on how to snag the best deal when renting an HDB flat.
According to OrangeTee & Tie’s estimates, median rents in Housing Board towns in January and February this year were at least 20% higher than the same period in the previous year. HDB rents increased 27.7% in February and 27.6% in January compared to the previous year, which is the highest rate of increase in 15 years. OrangeTee analyzed rental data across two months to ensure sufficient data for each HDB town.
The towns that saw the highest increase in median rents were Sengkang, Bukit Panjang, Sembawang, Pasir Ris, Punggol, Choa Chu Kang, and Yishun, with Sengkang having the highest median rent of $3,200 a month and Bukit Panjang with $3,000.
OrangeTee’s senior vice-president of research and analytics, Ms. Christine Sun, suggests that one reason for these higher rents is that these areas likely had a higher number of flats reaching their minimum occupation period in recent years. Punggol had 18,352 flats that reached their MOP, followed by Sengkang with 13,147 and Yishun with 9,910. Additionally, lower median rents in certain areas may have led to more demand, further driving up prices for some flats.
In conclusion, the rental market for HDB flats can be a tricky one to navigate, especially with the various factors that are driving up rents. However, with some careful planning and consideration, it is possible to secure the best deal when renting an HDB flat. It’s essential to be aware of the current market conditions and use tools such as HDB rental calculators to help you determine a fair price. Additionally, being open-minded to different neighborhoods and having strong negotiation skills can go a long way in securing a favorable rent price. By keeping these factors in mind, you’ll be well on your way to finding the perfect HDB flat and the best rental deal that fits your budget and lifestyle.
