January HDB rental volume rises amidst price dip

2,636 HDB flats were rented in January 2025.

HDB rental volumes in January increased by 7.5% month-on-month, an estimated 2,636 HDB flats compared to 2,452 in December 2024, according to data from 99.co.

Year-on-year, HDB rental volumes decreased by 12.9% compared to January 2024. However. volumes were also 10.3% lower than the 5-year average for January.

By room type, in January 2025, 34% of the total rental volume was from 3-room, 37.7% from 4-room, 23.3% from 5-room, and 5% from Executive.

Meanwhile, January 2025 HDB rental prices dropped by 0.6% compared to December 2024. Mature and Non-Mature Estate rental prices decreased by 0.1% and 0.9%, respectively. 3-room rental prices increased by 0.1%. 4-room, 5-room, and Executive rental prices decreased by 1.3%, 0.6%, and 0.2%, respectively.

Overall year-on-year rental prices increased by 3.8% compared to January 2024.

Both Mature and Non-Mature Estate rental prices increased by 4.9% and 2.3%, respectively, year-on-year. Year-on-year, all room types recorded rental price increases: 3-room by 4.8%, 4-room by 3.2%, 5-room by 2.5%, and Executive by 5.6%.

Luqman Hakim, Chief Data & Analytics Officer at 99.co said that the market activity in January was likely fueled by expatriates securing leases ahead of the new year, as well as tenants taking advantage of declining rents. Landlords were also more willing to negotiate lower prices rather than leave their units vacant.

“However, given the firm demand, the price decline may only be temporary. The HDB rental market continues to attract tenants looking for affordable alternatives amid high private rental prices. However, if condo rents fall further, some tenants may opt to rent condos instead, which could place additional downward pressure on HDB rents in the coming months,” Hakim said.