March 2024 in Singapore saw a series of changes in the rental markets for private and public housing, reflecting dynamic adjustments in rental rates of different housing types and the impact of market demand. In this month, private housing rents, after falling for seven consecutive months, experienced a slight increase, while public housing rents continued to rise. The following is a detailed analysis of this trend, focusing on rental trends for different housing types, regional distributions, and market factors.

First, let's examine the changes in private housing rents. In March, rents for non-landed private residences in Singapore marginally rose by 0.3% month-on-month, marking a reversal of the previous seven months of decline. Despite this, compared to the same period last year, private housing rents were still down by 3.4%. This indicates that although the private rental market showed some signs of recovery, it still faces significant challenges. Notably, rents in the Rest of Central Region (RCR) saw the largest increase, up by 0.9%, while the Core Central Region (CCR) saw a modest increase of 0.3%, and rents in the Outside Central Region (OCR) experienced a slight decline. This reflects differences in rent adjustments among different types of private housing, and a possibly stronger market demand for mid-tier private residences.

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Next, we analyze the changes in public housing rents. Compared to private residences, public housing rents continued to rise in March, with a month-on-month increase of 0.6% and an 8.2% increase compared to the previous year. Among the different types of public housing, five-room flats saw the largest rent increase, up by 1.5%, while executive and three- to four-room flats saw increases of 1.3% and 0.8%, respectively. This indicates that the public housing rental market remains robust, possibly influenced by some tenants opting for more affordable housing options under inflationary pressures.

Additionally, it's important to note the rental trends across different regions. In March, the Rest of Central Region (RCR), representing mid-tier private housing, experienced the most significant rent increase, up by 0.9%, while the Core Central Region (CCR) saw a modest increase of 0.3%, and the Outside Central Region (OCR) experienced a slight decline. This indicates regional differences in the rental market, possibly influenced by regional characteristics and supply-demand dynamics.

Lastly, from a market perspective, although there was a slight increase in private housing rents, it is still too early to declare that rents have bottomed out. In contrast, the continuous rise in public housing rents may make it a more attractive option for tenants sensitive to rental prices under inflationary pressures. Additionally, slowing economic growth could impact the demand for foreign workers, thereby affecting the rental demand for both public and private housing.