According to estimates from property website 99.co and the Singapore Real Estate Exchange SRX, local private residential rents in Singapore dropped by 0.5% month-on-month in September, marking the consecutive second-month decline. The most significant decline was observed in the mass-market private residential segment outside the central region (OCR), with a decrease of 1.3%; the mid-tier private residential segment in other central regions (RCR) experienced a 0.2% drop.

However, rents for high-end private residential properties in the core central region (CCR) increased by 0.5% on a month-on-month basis. Overall private residential rents have risen by 13.9% compared to the same period last year.

Meanwhile, HDB rents have seen a 0.4% increase driven by increased demand. Despite the 24th consecutive month of rent increase for HDB units, rental transaction volumes have declined. The number of HDB units rented out in September fell by 7.8% month-on-month to 2,763 units, but this still represents a 20% increase compared to the same period last year.

This trend indicates a shift in tenant preferences and demands, with more leaning towards HDB units. Possible reasons for this shift could be that HDB units offer more budget-friendly housing options.

The significant decline in the mass-market private residential segment outside the central region (OCR) further supports this viewpoint. On the other hand, the increase in the high-end private residential segment in the core central region (CCR) suggests that some affluent tenants still prefer upscale private residential properties.

Despite the rise in HDB rents, the decline in transaction volumes may indicate that some tenants are seeking more budget-friendly housing options or considering purchasing their own homes. This could be linked to the current economic situation, with many individuals leaning towards homeownership rather than renting.