Regulation of Rental Prices of HDB Flats Given Uptrend
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether the Ministry of National Development will regulate surging HDB rental prices and enhance regulations to improve access for Singaporeans, as raised by Mr Yip Hon Weng. Minister for National Development Desmond Lee responded that HDB will not interfere in private rental agreements, as rates are determined by market factors like location and property fittings. To assist tenants, HDB provides median rent statistics, and the Non-Citizen quota helps maintain the heartlands' Singaporean character while facilitating better citizen access to the rental market. The Minister attributed rising rents to post-pandemic demand and border reopening, noting that the government will continue monitoring market conditions closely. Moving forward, the Ministry will review housing policies to ensure they remain relevant in meeting the housing needs of Singaporeans.
Transcript
21 Mr Yip Hon Weng asked the Minister for National Development given the surge in HDB rental prices, whether the Ministry intends (i) to regulate the rental prices of HDB flats if they continue to go up and (ii) to enhance rental regulations to allow Singaporeans to have better access to the HDB rental market.
Mr Desmond Lee: With the easing of COVID-19 measures and the reopening of Singapore’s borders, there has been strong demand for rental accommodation both in the private and HDB rental markets, which has led to an increase in rents.
Rental rates of HDB flats on the open market are private arrangements between the owners and tenants, and dependent on various factors, such as location and provision of fittings and furniture in the rental property. It would not be appropriate for HDB to interfere in private rental agreements. To facilitate informed decision making by owners and tenants, HDB publishes the median rent of flats in various locations with rental approvals under HDB’s Rental Statistics page.
HDB implemented the Non-Citizen (NC) quota for renting out of flats in January 2014 to prevent the formation of foreigner enclaves and to maintain the Singaporean character of our HDB heartlands. Once the NC quota for a block or neighbourhood is reached, no further applications, whether a new or renewal application, will be accepted for renting to the affected group of non-citizen tenants. This helps to allow Singaporeans better access to rent a flat.
Nevertheless, we will continue to monitor the housing and rental market conditions closely and review our housing policies to ensure they remain relevant in meeting the housing needs of Singaporeans.