SINGAPORE – Last month, a five-room HDB flat in Ang Mo Kio, created by combining two units, was rented out at a record-breaking rate of S$6500.
According to data on the Housing and Development Board(HDB)’s website, which lists rental rates for different areas and types of flats over the past year, the highest rental rate was not from flats in the city centre, but from this unit, which has 56 years left on its lease and is located in Ang Mo Kio.
This particular flat is believed to be created by combining two three-room flats and is larger than a typical five-room flat, with an estimated area of over 1400 square feet.
However, despite its spaciousness, the rental price of this unit is more than double the median rental rate for similar units in the area, which stood at S$3,150 in Q4 of 2022.
In terms of leasehold, the HDB block 549 Ang Mo Kio Avenue 10 started its lease on 1 January 1981, leaving only 56 years and ten months on the lease.
Although there are nearby bus stops, the nearest MRT station is around a 10-minute walk away, according to Google Maps:
Prior to this, the highest rental rate listed on the HDB’s website was for a four-room flat with less than 50 years left on its lease, located at Block 17 Seng Poh Road.
It was rented out in December last year for S$6200, which was the highest reported monthly rental rate for the past year across the entire island.
Since December last year, units at [email protected] have been rented out at S$6,000 for both 4-room and 5-room units. A 5-room unit at block 1B with an estimated area of 1,151 square feet, managed to reach S$6,250.00 this month.
Singapore’s rental market is expected to continue its upward trend in 2023
Singapore’s private and public housing rental market is expected to continue upward in 2023 due to rising costs and surging demand.
The Business Times even described that 2023 would be “another year of pain for tenants” as higher property taxes and interest rates are likely to contribute to more increases in rents.
An expat, who goes by the name salshoult on her TikTok account, recently shared her experience of an unreasonable rental hike by her landlord.
The landlord informed her that her rental would “ONLY” increase by 75%, and if she chose not to accept, he would put it on the open market at a 100% increased rate.
“So really he’s giving us a 25% discount, so generous of him!” she said sarcastically.
Real estate agents have reported an increase in tenant complaints, with some landlords asking for unreasonable rents, with some even asking for a 60% increase in rent.
They also warned that prices could rise as much as 20% again this year.
Some expats, who were previously interviewed by FT and believed that Hong Kong was the most expensive city, are now considering moving out of Singapore due to the rising cost of living and high rental prices.