Rental costs of HDB flats surge most within the heartlands; Punggol, Woodlands among the many highest

SINGAPORE: Lease costs of Housing and Improvement Board (HDB) flats throughout Singapore have risen to document ranges, with some growing by almost 50 per cent within the final two-and-a-half years.

Evaluation of median hire costs of HDB flats exhibits that costs have reached document excessive in some neighbourhoods.

Lease costs had principally stayed stagnant or fallen within the 10 quarters earlier than COVID-19 hit in the beginning of 2020, however they’ve since soared within the 10 quarters after.

Earlier this month, CNA reported that folks in Singapore are facing up to a 70 per cent increase of their rental funds. 

Development delays as a result of COVID-19, the reopening of borders amid the pandemic restoration and a tighter provide of flats are among the many causes for the rise in hire costs throughout the nation, specialists instructed CNA.

The present property growth has additionally seen HDB resale prices hitting record highs, with costs rising for 10 consecutive quarters since Q1 2020.

“A growth in HDB resale transactions would in a manner scale back the availability of HDB flats out there for lease. This tighter provide – when set in opposition to wholesome demand – will put upward strain on rents,” stated PropNex’s head of analysis and content material Wong Siew Ying.

CNA seems at how hire costs of HDB items have elevated throughout most flat sizes in nearly each city, and what would possibly occur subsequent.

FIVE-ROOM FLATS

Lease costs for HDB flats stayed principally stagnant within the two-and-a-half years earlier than the primary quarter of 2020, when COVID-19 hit.

Some cities, principally these within the heartlands, noticed median month-to-month hire costs fall between the third quarter of 2017 and the primary quarter of 2020. However for the reason that begin of the pandemic, rents have gone upwards and principally within the heartlands relatively than central areas.

Lease costs for studios in a few of these cities hit new highs within the third quarter of this 12 months, in accordance with knowledge launched by HDB earlier this month.

In contrast with the primary quarter of 2020, the rental costs for five-room flats have elevated by as excessive as 47.4 per cent. 

The most important development was seen in Punggol, the place the median month-to-month hire hit S$2,800. The subsequent largest was in Woodlands, the place rents rose 44.4 per cent, with Sengkang coming third.