Monthly rent for 4-room Tiong Bahru flat hits S$6,200 – Mothership.SG
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Move on, Bendemir. Before, 4 Room HDB Flat and 38A Bendemeer Road was rented out for S$4,600 per month. This is October 2022.
But Seng Poh Road flat, Tiong Bahru beat it.
Sen Po Road
According to HDB records, a four-bedroom flat in Block 17 of Seng Poh Road was rented for S$6,200 per month.Despite being 73 years old (completed in 1949).
The 4-room Seng Poh Road unit is about 1,200 square feet and is an older unit built by the Singapore Improvement Trust, so by today’s standards it’s plenty big.
With the recent upward trend in HDB rental prices, perhaps the figure of S$4,600 is considered a bargain these days.
However, the records are not exhaustive, so there may be higher rental fees paid by someone else that have not yet been recorded.
Rents could spike and remain high at the end of 2022
According to HDB rental data, the number of four-room apartments with rents above S$4,000 has doubled in the last two months. Here are some stats:
- Last October-November, 114 four-bedroom units were rented for over $4,000.
- From December 2022 to January 2023, the number of such units has increased to 223.
- In Toa Payoh, that number has more than quadrupled, going from 4 to 21 such units.
- In Choa Chu Kang, which previously had no such units, seven new units were rented out at these prices.
Interview with a real estate industry expert Shin Min Daily He said four main factors are likely to keep rents high. they are:
Fewer units reaching minimum occupancy period (MOP)
Post-MOP rentable units have fallen from 31,000 units last year to 15,700 units this year.
Growing demand for rentals
Students and expat workers returning home after borders reopen, college students and young couples waiting for their build-to-order (BTO) apartments to be completed will drive demand.
Acceptance of higher rental prices
Condo rental prices rose even faster than HDB rental prices (up 34% in 2022 compared to HDB’s 27.8% rise).according to this Real Estate Portal 99.co and SRX.
Many tenants who have wanted to rent a condo or private home may find it too expensive and resort to renting an HDB instead.
They have the financial capacity to accept high HDB rental prices.
Rise in bank interest rates
Landlords who have taken bank loans to pay off their mortgages will be affected by rising interest rates.
They are likely to raise rents to alleviate financial stress.
Increase in housing units could slow this trend
The Straits Times (ST) It also acknowledged that HDB rents are rising steadily, but suggests that an increase in residential units in 2023 could help slow this upward rent trend.
the analyst we spoke to ST sIncreased supply of BTO flats, 20,000 BTO flat expected Scheduled for completion in 2023.
These could gradually ease pressure on the rental market from owners renting out on an interim basis.
sThe supply of private rental units is also expected to increase.Approximately 17,400 units, excluding executive condominiums, scheduled for completion in 2023.
As such, condo rents are expected to grow at a moderate rate of 13-19%.
statement from Ministry of National Development saidThe government is closely monitoring the rental housing market. Rising rental prices may affect not only Singaporeans who need rentals, but also global talent.
Top image by Google Maps.
https://mothership.sg/2023/02/monthly-rent-for-4-room-tiong-bahru-flat-reaches-s6200/ Monthly rent for 4-room Tiong Bahru flat hits S$6,200 – Mothership.SG