Currently, Singapore's private residential rents have declined for five consecutive months, dropping by 0.5% month-on-month in December last year, with a full-year increase of 1.2%, significantly lower than 31.4% in 2022.

Among apartments in various districts, rents for mid-range apartments in the Rest of Central Region (RCR) saw the most significant decline, dropping by 1% month-on-month. Rents for mass-market public housing outside the Central Region (OCR) and high-end apartments in the Core Central Region (CCR) also decreased by 0.6% and 0.5%, respectively.

Due to the overall downward trend in rents, more landlords are willing to lower rents to attract more tenants to sign or renew leases. Some landlords even agree to reduce rents by 10% to attract tenants.

In December 2023, rents decreased by 0.5% compared to November, but the number of rentals increased by 14%, reaching 5,644 units. Overall, the total number of apartment units rented out decreased by 8.08% for the year, to 68,743 units.

In contrast to the decline in apartment rents, HDB rents increased. In December last year, HDB rents rose by 1% month-on-month. For the entire year, HDB rents increased by 9.3% overall, but the growth rate slowed significantly, much lower than the 26.8% increase in the previous year.

One of the main reasons for this change is the reduction in the number of HDB units that have met the Minimum Occupation Period (MOP) requirement, leading to a corresponding decrease in units available for rent.

According to the latest data, the number of HDB units meeting the MOP requirement will decrease to 13,093 this year. Due to this limitation, rents are expected to remain stable, with increases projected to be between 1% and 3% this year.

Strong rental demand and insufficient supply have led to continuous increases in rental prices in Singapore in recent years. To address the imbalance between supply and demand in the market, the Singapore government has increased the supply of HDB flats and private residential units and closely collaborated with the construction industry.

Furthermore, the government has implemented a new measure to increase the maximum number of tenants in rental units. From January 22, 2024, to December 31, 2026, the maximum number of tenants in a unit will increase from the original 6 to 8. However, this measure applies only to units with 4 bedrooms or more, while the maximum number of tenants for 1, 2, and 3-bedroom HDB flats remains unchanged. The Housing and Development Board will decide whether to extend this measure based on market performance by the end of 2026.