Renting Faster at the Same Price in Peak Periods?
- Faster rentals at the same price come from presentation, marketing and tenant qualification.
- Well-staged, well-photographed units attract more viewings.
- Pricing to the market from day one avoids stale listings.
What if you could boost your rental income without a larger investment? A policy change may reshape the rental market. From 22 January 2024, Singapore allows up to eight unrelated tenants in larger HDB flats (four-room and above) and private residential properties of at least 90 sqm — up from six — in effect until 31 December 2026.
Who Benefits
Landlords and investors can maximise rental potential — more tenants mean higher income and lower cost per tenant, making a property more attractive. Tenants gain more affordable shared-accommodation options. A win-win, especially for investors positioned to seize the shift.
The Impact on Rental Prices: Stabilisation
The market faces oversupply, especially in condos — listings tripled year-on-year as of January 2024, and deals that used to close in a day now take longer. After rapid growth, rents are stabilising: private home rents rose 8.7% in 2023, a sharp slowdown from 27.9% the year before. Expect continued softness as excess supply is absorbed, with possible stabilisation later as supply tightens. With more options, tenants gain bargaining power — so stay competitive with attractive terms and high standards.
How to Maximise Returns
Convert larger units into co-living or dual-key layouts — reconfigure to create private spaces (kitchenettes, bathrooms) for the growing co-living demand. Upgrade amenities — cleaning services, communal spaces and leisure facilities command premiums. A basic conversion might cost ~$40,000; more extensive renovations up to $150,000 — but they can lift yields meaningfully.
Practical Advice
Avoid permanent concrete structures so the original layout can be reinstated; leave room for communal areas; plan carefully (a 1,200 sqft flat can become a studio plus a one-bedroom, each with its own entrance and a shared foyer); build tenant relationships to reduce turnover; and note that dual-key units can be harder to resell to a narrower buyer pool.
Market Outlook (Q3 2024 onward)
Steady economic growth supports valuations; high prices and rates may price out some buyers; and interest is rising in OCR properties near MRT (Grand Dunman, J'den, Watten House performed well). As new supply completes into 2024–2025, rents may dip before finding a new equilibrium — a good window to secure the "right layout" property. Demand is shifting toward co-living, flexible leases and top amenities, and the long-term outlook remains promising for both local and global investors.