From the overall median rent of HDB flats in each municipality, it can be seen that rents in non-matured areas are going strong, ranking the highest in five municipalities, with a median of S$2800 (about RM9240), among which three are non-matured areas, namely Bukit Panjang, Punggol and Sengkang.
The second highest median is Redhill (S$2750 (about RM9075)) and the third is Sembawang (S$2725 (about RM8992 50 sen)).
According to past data, from May this year, the overall median rent in Bukit Panjang, Punggol and Sengkang rose from about S$2200 (about RM7360) to S$2300 (about RM7590) to the current S$2800, an increase of about S$500 (about RM1650), which is more significant.
The estimated HDB rental data for October, the number of units rented out in October increased by 10.3% to 1995 units, compared to the same period last year, an increase of 7.5%. The number of private housing units rented out last month fell by 8.7% from a year earlier.
In terms of rents, overall HDB rents have risen by 26.6% over the past year, up 1.8% from a year earlier.
The rate of increase in non-established areas was higher than that of established areas, with the former rising 2.1% and the latter 1.6%. Four-bedroom and condominium HDB rents rose the most, by 4.4% and 6.1% respectively.
With houses in mature areas being "snapped up", tenants need to consider non-mature municipalities that were previously out of consideration.
Since the epidemic, rents for HDB flats in non-established towns have risen more than those in established towns, with rents in non-established areas soaring by 43.3% between April 2020 and October 2022, compared to a 36.2% increase in established areas.
The sharp rise in apartment-style unit rents indicates a growing demand for larger space units.
In addition, the rise in HDB rents and rentals may be related to the latest cooling measures introduced by the Singapore government, as some private homeowners who would have bought HDB flats for resale had to wait for 15 months or opt for cheaper HDB flats, thus pushing up rents and rentals.
The HDB rental market as a whole is currently facing a "shortage", especially in mature towns to rent houses can not meet demand, tenants are turning to non-mature towns. Recently, the overall increase in HDB rents has been more significant.
The high median rents in non-mature towns are related to the heat of the market.
In Punggol and Sengkang, although the location seems to be some distance away from the city center, the people who rent houses in that area are not necessarily working in the city, but may be working in the neighborhood or around Paya Lebar.
Punggol has developed into a town with a lot of amenities and has its own appeal. I also believe that those who can offer high rents are those who are conveniently located and have a good view of the building.
The high median rent in the above mentioned non-mature area municipalities is also related to the type of housing.
If Bukit Panjang lets out more large units, it will push up the median rent in the area. More buyers who prefer larger homes and have limited budget will also consider switching to non-established towns.
Singapore's Minister for National Development Lee Chee Seng earlier revealed in a written reply to a query from non-constituency MP Leong Boon Hee that the highest median rent in non-mature areas ranged from S$1,150 (about RM) to S$2,100 (about RM), while in mature areas it was S$1,100 to S$2,200 (about RM).
