Singapore’s One‑Year Shake‑Up: A Rental Tale of 2020‑2021
When the city‑state stumbled into 2020, it felt almost like stepping into a sci‑fi novel. Work‑from‑home (WFH) became the norm, and the “Circuit Breaker” policy turned streets into quiet, ghost‑like suburbs. The result? A runaway scramble for homes that could make people feel safe, comfy, and maybe even a little regal.
What Went Wrong for Foreign Workers?
Many foreign residents found themselves in a “no‑go” zone when trying to return home or re‑enter Singapore. Picture a train that’s still out of service while the bridge is still under construction. That snag triggered:
- Longer Leases: Tenants chose a lease‑to‑lease switch‑back to keep their houses in place through the uncertainty.
- Alternate Arrangements: Think of pop‑ups: short‑term rentals, host‑family setups, and even “house‑share” skool.
- Room‑mate Mania: A quick “let’s split the costs” vibe sprang up, fueled by the quick fix of a shared pad.
Why the Rental Market Bounced like a Rubber Ball?
Here’s the hard look at the shifts:
- Demand Drop: With strict controls in place, less wanderers meant less hips for the rent game. If there are fewer prospects, landlords had to lower the dice.
- Supply Surplus: New apartment launches kept sprinkling fresh units into the market, like confetti at a party. But the party planners (developers) held the beer cup short.
- Price Fall: Let’s be honest: a decline of 4‑6% in rental rates from the 2019 level was the juicy headline for everyone.
What This Means for Renters
Prepared to be first‑tocheck into a record price drop, the potential renter can:
- Check the lease terms: Are you sky‑seeing the whole rental period or a contract that knows when you might roam?
- Ask about “moving‑in” perks: Concession’s where you can deposit less than the full balance, or free furniture swaps.
- Weigh the location: Try to stay close to that WFH vibe; a thousand‑to‑beat commute isn’t needed.
Final Thought
Even after the Spring “circuit breaker” was unplugged, Singapore’s rental landscape still feels the echo of a bold relaunch. If you can navigate the twisty streets with a sprinkle of humor and mindful decision‑making, you’ll find not just a roof, but a safe haven that serves your life, not just your busy schedule.
A seeming recovery from 1H 2020
Rental Market: Thriving in the Pandemic Shuffle
Why Renters Are Getting the Upper Hand
When the world hit pause with lockdowns, many thought the rent game would slip into a sad slump. Instead, the rental market is showing a surprisingly bright side, proving that sometimes a crisis can spark an unexpected rebound.
Key Reasons Behind the Upswing
- Demand Surge: With remote work booming, people’re moving to places that feel more like a home, driving rental interest up.
- Flexibility Appeal: Short‑term, flexible leases are screaming “no commitment” – a perfect fit for post‑pandemic life.
- Economic Adaptation: Landlords adapt faster than politicians—quickly adjusting rents to match new market realities.
- Supply Gaps: Some market segments still lack supply, so landlords are renting out any available space.
What This Means for Tenants
While rents are climbing, they’re doing so at a pace that feels manageable. Twenty‑year‑old college kids can still find a decent place without throwing their savings packing, and retirees aren’t seeing absurd price jumps either. So, as long as you keep an eye on neighborhood trends, you’ll have a better shot finding a place that feels both affordable and comfy.
Bottom Line
The rental market isn’t just surviving—it’s thriving, still flippin’ a grin even amid all the chaos. If you’re hunting for a new pad, consider the silver lining: a booming market means more options, more flexibility, and a chance to snag a great spot before the real estate forces settle down again.
Condo Rents Are Trending Upward!
Hey there, rental enthusiasts! Ever wondered what the latest gossip in the condo world looks like? Grab a cup of coffee because we’ve got the inside scoop from the SRX flash data.
What the Numbers Say
- By the end of September 2021, condo rents were climbing.
- The average rate jumped 8% compared to the same time last year.
- Even though we’re still down about a 10% dip from the 2013 peak, the trend is clearly heading in the right direction.
Bottom Line
It turns out that condo dwellers are finally beating the slump that haunted the 2013 market. Keep an eye on the numbers—they’re moving forward, one rent at a time!
HDB Rentals: A Roller Coaster That’s Actually Steady
Picture this: as Covid‑19 raged, HDB rental rates were on a relentless rise—15 months in a row up until September. That’s a solid 8.8% jump from last year, even though they’re still about 7% below their 2013 peak.
Condominiums – The Twilight Zone of Leasing
Condo leasing has dipped slightly—from 4,593 units in Sept 2020 to 4,454 in Sept 2021—but the nosedive is hardly a headline‑making one.
HDB – The Silver Lining
Meanwhile, HDB saw a spike in leasing volume, hitting 1,702 units in September this year versus 1,654 the same month last year.
Good news for landlords who thought the pandemic would make renting a nightmare. The world didn’t follow the gloomy script most experts envisioned.
What Actually Happened?
When the pandemic hit, we saw a sharp decline in rates and volumes—140% drop for the first half of 2020. But the market, like a stubborn spring, bounced back faster than expected.
Top Rental Challenges in 2021 (And Beyond)
- Work‑From‑Home Surge: Everyone is borrowing couches and marketing temporary spots.
- Short‑Term Lease Pitfalls: The “quick fix” can become a quick regret.
- Locals Canceling Overseas Deals: Home is the new office; travel plans are popping out like bad milk.
- Expatriates Shying Away from Commutes: Fewer desks at home, more desks at home!
- Rising Property Prices + Home‑School Distance (HSD): When bills get higher, the rent game shifts.
- Construction Delays: New builds take a while; the demand stays high while waiting.
In short, HDB rentals have bounced back, and landlords are riding the wave—while renters feel the squeeze. The market’s got more twists than a season of your favorite drama, but thanks to the resilience of Singapore’s real‑estate scene, it’s all about adaptation—and maybe a dash of humor.
1. Work From Home is pushing up demand for temporary accommodation
Revealing the New Remote‑Work Rental Trend
From Stay‑Home to Stay‑Property
Since the pandemic, many businesses are sticking with unlimited work‑from‑home policies. It’s no surprise that people aren’t as keen on living in offices as they are on living in homes that fit their new lifestyle.
Meet the New‑Age Renters
Realtors report a sudden surge in HDB rental inquiries just two or three months after last year’s Circuit Breaker. COVID may be over for most, but the showdown over remote work vs. home life is still on.
What the Realtor Observed
- Work‑from‑home is challenging when the entire crew (kids, parents, siblings) is at once pulling a rabbit out of a hat.
- Kids are juggling online tuition; parents are joining Zoom meetings on the same sofa.
- Most of us are too young to buy homes or lack the funds – so renting becomes the go‑to.
- They’re not looking for luxury; they just want a place of their own.
Why Small Units are Hot
- Traditionally, 1‑bedrooms in non‑central spots stayed vacant for a while.
- But the budget‑conscious crowd, looking for communal pools or facilities, sees them as a golden ticket.
- They’re excited to finally “own” a space with amenities they never had back home.
Market Competition Turns Intense
Even in the Out‑City Region (OCR) and outside the reach of MRT stations, the competition among budget renters is fierce. The items that once seemed impossible to rent are now going out of
order — and that’s how the rental market is reshaping itself.
2. The previous strategy of getting shorter leases may backfire
Why Fewer Condo Leases Might Actually Mean Higher Rents
We asked why fewer people are signing condo leases, and whether that signals rent prices will tumble.
Figuring it out isn’t as simple as the numbers suggest. A dip in leasing volume can actually indicate tenants playing the “lock‑in” game. They’re hoping to secure current rates before prices rise.
What a Hot Seller Says About the Situation
A seasoned realtor explained it like this:
“If you expect a soft rental market—as we did in early 2020—it’s not uncommon to see more leases signed. Tenants think rates will drop, so they lock in shorter terms with the plan to hop to a cheaper spot (or even the same building) when the prices do fall.”
But in a market where rents are climbing steadily, that strategy can backfire. Landlords may hike the price on the renewal date, leaving those quick‑move tenants with a sudden and unexpected bill.
Why Short Leases Aren’t Always the Safety Net
- A lean leasing volume often shows tenants who previously had a 3‑ or 6‑month lease now extending for a longer period to lock in the current rate.
- Attempting to snag a discount by signing a short lease can be risky if the market shifts toward higher rents.
- Instead of gambling on a future price drop, focus on finding a spot that’s both affordable and convenient.
- There’s a real chance you’ll become stuck with no local options when your lease ends, forcing you into a pricier or less convenient move.
Bottom line: Leasing volume hiccups can sometimes signal a strategic lock‑in maneuver rather than a beacon of falling rents. Keep it simple, stay smart, and maybe skip the wild gamble on future discounts.
3. More locals are cancelling overseas work arrangements
Singapore’s “Homecoming” Surge: Local Buyers vs. Rent‑Hunters
Picture this: the pandemic paused travel, but now that visa restrictions are easing, a wave of Singaporeans—whether newly minted expats or long‑time overseas residents—are swooping back into the city‑state, and the housing market feels the pressure.
Who’s Back?
- Unexpected returnees – people who were never planning to pack up their passports.
- First‑time home buyers – those who have never owned property in Singapore.
- Uncertain futures – ex‑expats who might globe‑trot again after the pandemic.
Because of all these variables, a unique scenario has emerged: Singaporean locals are now competing with foreigners for the coveted rental units.
Reality Check From the Trenches
A seasoned realtor shared insights that highlight the challenges:
“Even if they decide to make Singapore their permanent home, buying a property is a marathon, not a sprint. Renovations take forever because of COVID‑related delays, house hunting is slowed by viewing restrictions, and newly built homes require a wait‑list for construction. Until that’s sorted, they’re stuck hunkering down in a rental.”
So, if you’re a “returnee” looking to flip property, you’ll probably find yourself in a rental jungle for the interim. Good news? The market’s opening up new doors for everyone, and with a bit of patience (and maybe a few good jokes), you’ll carve out your slice of Singapore real estate.
4. More expatriates want to avoid travelling to and from home
How the Movement Control Order (MCO) Left Workers Stranded on the Wrong Side of the Border
Stuck in the Great Housing Dilemma
Picture this: an MCO hit, and suddenly a bunch of Malaysian workers found themselves stranded on the wrong end of the Causeway. They had to scramble for a place to crash, but there was a catch—time, or the lack of it, made good finds feel like a distant dream.
What Actually Happened
- Quick accommodation means no room to check neighborhoods or bargain for better rates.
- They’re stuck in high-rent, short-term spots that toss their wallets into a tangle.
- Even simple moves become a financial hoopla, especially when the MCO forces you to stay home without a central hub.
Not Just Workers – Expats Got a Taste of Trouble Too
Expatriates near the border weren’t spared either. Once they decided to return home, the world put a new waiting list before them: Mandatory Stay Home Notices from both sides of the fence.
Every trip now involves a costly chain of test kits and uncertain visa checks.
Why This Matters for Realtors
- Lenders are feeling the pinch—rentals are dropping as tenants play it safe.
- Expats are picking longer leases out of instinct— “Not sure when the sky will clear, better keep my base.”
- Officials see the ripple: a slower sale market that might keep trending downward until the pandemic truly ends.
In Short
Across this shabby cross-border scene, workers, expats, and real estate folks find themselves in a shared “hold‑your‑fires” moment. The MCO and the ensuing pandemic have forced people to keep their fingers tightly wrapped around uncertain futures.
5. Rising property prices and the Home School Distance (HSD) have affected rental
Why Renting Near the School is a Smart Move (and How HSD Makes It Easier)
Shortly after the Home School Distance (HSD) rule rolled out, many families started realizing that living close to their kids’ schools can unlock priority enrollment. And guess what? The same advantage applies to rental properties. So if you want your child the best shot at a top school, consider signing a lease a mile away.
Why Families Are Leaning Toward Renting
- Cost‑savvy planning: Buying a home is a long‑term commitment, but renting lets you “test the area” before you decide to put down roots. Many parents wonder if they’ll still want to stay in a neighbourhood once their kid is done with secondary school.
- Timing the market: Some believe that the sky‑high property prices were partly thanks to the “Covid ripple” – lower interest rates and a surge in demand. They think the best buy is a few years down the line when prices cool off.
- Future‑proofing finances: Renting now keeps cash flow fluid. You can move when you need to and later purchase a home in the exact spot you’re eyeing without the pressure of a quick sale.
Realtors’ Take
One realtor summed it up best: “If your child’s Secondary School spells four years, you shouldn’t tie yourself to that spot permanently. Renting gives you flexibility, and you’ll have the option to buy when the market feels right.”
HSD’s Recent Overhaul
Recently, HSD got a refresh – the radius just got a bit bigger, meaning more properties now qualify for that one‑kilometre sweet spot. With more rental options popping up in the 1‑km zone, families can match their budgets with their enrollment priorities easier than ever.
That’s the lowdown: rental units near a top school can boost your child’s chances, give you room to adjust, and maybe even lower your long‑term costs when you finally decide to buy.
6. Further down the road, construction and renovation delays may keep rental demand high
Rentals are sticking around, but why?
When we rang around to see if housing rent prices were set to tumble, the verdict was pretty clear: not anytime soon. Here’s the scoop on why that’s the case.
Key reasons keeping rents high
- Property prices are up – the market is hot, and sellers are pocketing record funds.
- Demand is booming – more people want to move in, and the supply just can’t keep pace.
- Labour shortages – the pandemic left many construction crews thin.
- Supply chain hiccups – delays from HDB to private developers are piling up.
- Homes are being flipped – owners sell to cash in on the high prices and then lock into fresh launch properties.
All of this means more locals are looking for rental units than before. Until the pandemic, foreigners dominated the tenant scene, but now it’s the locals who are stepping up the game.
Bottom line? Rent prices are staying strong for the foreseeable future, so if you’re hunting a rental, it’s a good time to act.
Finally, don’t forget that more HDB upgraders can mean more tenants too!
Finding Your Next Home Without Renting Out of Your Budget
Ever feel like the timing of your property upgrade is a bit of a gymnast’s routine? If you’re planning to sell your flat first and snag a condo later, the window for a smooth transition can be trickier than assembling IKEA furniture without the instructions.
With more than 50,000 flats heading to the MHD office and HDB upgraders on the front foot, a fair slice of Singaporeans will likely need a short‑term place while the cart wheels back into motion.
Don’t stress—reach out to our team! Even if you’re wary of sky‑high rent, our seasoned experts may pull off a workaround (no guarantees, but we’ll give it a crack). Keep tabs on the latest market moves by following us on Stack and reviewing both fresh listings and resale gems.
Why a Beat‑the‑Rent Plan Matters
Rent can creep up faster than a cheese grater on a hot pan. A well‑timed move can keep your wallet in shape, especially when you’re juggling sale proceeds and new condo costs.
- Capitalize on Market Peaks: Sell when demand is high to maximise returns.
- Plan a Condo Purchase: Secure the ideal price point before the market swings.
- Short‑Term Housing: Rental shortages can push prices up; a quick lease cushion keeps costs down.
Your Next Steps
- Check your selling timeline and set the sale deadline.
- Consult with our experts for a tailored upgrade strategy.
- Stay alert on pricing shifts—follow us on Stack for real‑time updates.
Ready to move forward without your rent creeping up the stairs? Contact us today, and let’s chart a practical path to your dream condo—while keeping the rent at bay.
Disclaimer
Our expertise is top‑notch, but properties market singularities mean guarantees are rare—just think of it as a smart gamble, not a sure thing.
