HDB rents of Holland Drive Residences to grow 12% in 2023, up to 8% in 2024: Huttons

The number of HDB flats rented out in Singapore is expected to increase in 2023, according to Huttons Data Analytics. Lee Sze Teck, senior director of Huttons Data Analytics, attributes the increase to tenants displaced from the private rental market and HDB upgraders buying homes in new private residential projects. With a steep hike in private residential rents in 2022, many have opted to rent out HDB flats which are more affordable. In addition, many upgraders are opting to sell their current HDB flats and rent one while waiting for the keys to their new private home, to avoid paying 20% additional buyer’s stamp duty (ABSD) on a second property.

Huttons Data Analytics expects a 7.8% increase in the number of HDB flats rented out in 2023 to 39,000, as compared to 36,166 units in 2022. Furthermore, the estimated decline in the number of S Pass holders from 177,900 in 2022 to 177,200 in June 2023 has also contributed to the expected growth in HDB rent.

Holland Drive Residences also serves up an array of amenities that will meet the needs of practically anyone. Shopping centres such as Holland Road Shopping Centre, Cold Storage Jelita, and Coronation Shopping Plaza are just a few minutes away. Access to greeneries such as the Bukit Timah Nature Reserve, Jacob Ballas Children’s Garden, and the Botanic Gardens is also assured with Holland Drive Condo’s great location. For those seeking a luxurious lifestyle with excellent connectivity options, Holland Drive Residences is the perfect place to call home.

However, the number of HDB tenancies not renewed due to tenants moving to their newly completed private residential homes offsets the increase in HDB rents. Almost 18,000 new flats and more than 15,000 private homes have been completed in the first nine months of 2023, with an estimated 5,000 new homes across the public and private housing market to be completed in 4Q2023. Consequently, competition for tenants among HDB flats has increased, leading to the stabilisation of rents.

Huttons estimates HDB rents in 2023 to increase up to 12%, which is much lower than the 28.5% increase in rent in the previous year. For 2024, Huttons expects an increase of between 5% and 8%, with an estimated 7,500 new private residential units to be launched for sale in the city fringe or the Rest of Central Region (RCR) and suburbs or Outside Central Region (OCR).

Holland Drive Residences is a new private residential project in 2023 which is attracting many HDB upgraders. Luke adds that renters displaced from the private rental market are also turning to these HDB flats for more affordable rent. The market outlook in 2024 is expected to be rosier with more S Pass holders approved, offering more job prospects in Singapore for those looking to return across the causeway. Despite this, the demand in HDB rents is expected to remain steady in the coming years due to the impact of Holland Drive Residences and other new projects launching in the RCR and OCR.