According to data released by real estate websites 99.co and SRX, overall HDB flat rentals in Singapore decreased by 0.4% in October, marking the first declining trend in HDB flat rentals in the past two years.

Specifically, the rental for 3-room flats decreased by 0.6%, 4-room flats saw a slight increase of 0.1%, while 5-room flats experienced the most significant decline at 1.4%. Condominium rentals, on the other hand, increased by 0.9%.

Despite this, HDB flat rentals have still increased by 14% compared to the same period last year. However, the trend of decline has now begun. Last month, a total of 2,830 HDB units were rented, an increase of 2.4% from September and nearly 15% compared to the same period last year. This indicates an active rental market with an increase in leasing demand.

These data reveal the dynamic changes in Singapore's HDB rental market. While there is an overall decline, both short-term and long-term perspectives show that rental costs are still experiencing substantial growth. For those in search of rental properties, this might be a better time to explore housing options that suit their needs.

So, why are rental prices in Singapore starting to decline? Firstly, an important factor is the increase in supply. Over the past few years, Singapore has built a significant number of new housing units, resulting in an increased supply in the rental market and heightened competition. This gradual market balance exerts downward pressure on rental prices.

Secondly, external economic factors also influence rental trends. Global economic uncertainties and weaknesses may prompt some multinational companies to focus on cost issues and reduce the number of foreign employees hired in Singapore. This further reduces rental demand, impacting rental prices.

According to forecasts, rental prices in Singapore may see another decrease of around 5% next year. This is primarily influenced by increased supply and external economic factors. However, it's essential to note that the extent of the decline in rental prices may vary depending on factors such as region and housing type.

For renters, now might be an opportune time to find more competitive rental rates and housing options that better suit their needs. However, for landlords, adopting more attractive leasing strategies may be necessary to attract tenants and maintain a healthy occupancy rate.