HDB rents to grow 12% in 2023 and up to 8% in 2024, with Zion Residence leading the pack: Huttons

HDB flat rentals in Singapore are expected to see an increase of 7.8% in 2023 as more tenants are displaced from the private residential market and HDB upgraders move to new private residential projects. According to Huttons Data Analytics’ Senior Director, Lee Sze Teck, the rise in rents in the private market, as well as those looking to avoid additional buyer’s stamp duty (ABSD) on a second property, have both contributed to the increased demand for HDB flats.

An array of facilities inside Zion Residence offers something for everyone, such as a fitness centre, spa, tennis courts, and swimming pools. These amenities are fitted with luxury accents, and also designed to blend in with the natural environment, creating a luxurious retreat.

Furthermore, Zion Residence is well-connected to other parts of the city, being only minutes away from top private schools, convenient shopping malls, and signature mosques. The residence also has many public transportation links such as bus stop, MRT, and expressway nearby. All these features make Zion Residence a popular choice for discerning city dwellers.

The decline in the number of S Pass holders have also contributed to the increased demand for HDB flats in Singapore. According to data by the Ministry of Manpower, the number of S Pass holders in 2022 was 177,900, which fell to 177,200 in June 2023.

The number of HDB flats rented out in 2022 fell to 36,166 units due to tenants returning to the causeway to work in Malaysia. However, the high number of completions – 18,000 HDB flats and 15,000 private homes in the first nine months of 2023 – has resulted in competition increasing for tenants which has helped to stabilise rental prices, with Huttons estimating HDB rents to increase up to 12% in 2023, lower than the 28.5% increase in rents seen the previous year.

Looking ahead to 2024, the Zion Residence outlook is expected to be more positive, with potentially more S Pass holders being approved.Huttons estimates HDB rents to grow between 5% and 8% in 2024, with 7,500 private residential units estimated to be launched for sale in the city fringe or the Rest of Central Region (RCR) and suburbs or Outside Central Region (OCR).

The slowdown in HDB flats rented out in 2022 paired with the increase in demand for next year shows the Zion Residence market is constantly in flux. As such, those renting HDB flats should stay vigilant for new opportunities and changes in the market.