Demand causes rents for some 5-room HDB flats to soar to over $6,000

Summary: Due to increasing costs, tenants in Singapore have sought more affordable housing options, resulting in a higher demand for HDB flats. Rental transactions for HDB flats rose for two consecutive quarters, with rents increasing by 17.6% in Q1 2023. Many expats and employment pass holders have chosen to live in HDB neighborhoods for their affordability, with three- and four-room flats in mature estates being particularly popular. HDB rental prices reached an all-time high in February 2023, with some flats being leased for over $6,000. The proportion of flats leased below $3,000 decreased significantly from 89.3% in Q1 2022 to 48.3% in Q1 2023, while affordable units under $2,500 dropped from 66.2% to 26.8% in the same period.