HDB, URA to temporarily raise rental occupancy cap to meet demand; up to 8 unrelated tenants allowed
The number of tenants allowed in larger Housing Board flats and private residential properties will be temporarily increased for about three years, to better meet rental demand and support households that intend to rent.
From Jan 22, 2024, to Dec 31, 2026, owners of four-room or larger flats and private homes of at least 90 sq m will be allowed to house up to eight unrelated people who are not from the same family unit, up from the current cap of six, said HDB and the Urban Redevelopment Authority (URA) in a joint statement on Dec 20.
“We will review the need to extend this temporary measure depending on the rental situation in end-2026,” said National Development Minister Desmond Lee in a Facebook post.
He noted that since the pandemic, there has been a sharp increase in residential rents due to strong demand amid construction delays caused by the Covid-19 pandemic.
Market rents have jumped about 20 per cent for HDB and private residential properties since Jan 1, 2023, according to the Ministry of Finance. Prior to that, private rents surged 29.7 per cent year on year in 2022 – the fastest annual growth since 2007. In the same year, HDB rents rose at their quickest pace in 15 years, by 28.6 per cent, according to OrangeTee & Tie.
As mortgage rates, taxes and inflation jumped, many landlords passed the cost to their tenants. Rental demand surged on the return of expatriates, foreign students and permanent residents after the pandemic stabilised and global travel resumed, analysts say.
Mr Lee said: “To mitigate this, we ramped up housing supply, with close to 100,000 homes expected to be completed by 2025. This will allow Singaporeans currently renting while awaiting the completion of their new homes to collect their keys and vacate their rental units, further freeing up supply.”
He noted that a healthy rental supply needs to maintained, to support those looking to rent, such as households waiting to move into their new homes, those here to work or study, and younger Singaporeans who want to rent their own space.
Mr Lee said the temporary measure will apply only to larger properties, in order to maintain a conducive living environment for the larger community.
“We will monitor the situation closely and take action against any infringements or serious dis-amenities, including revoking the home owner’s rental approval,” he added.
The authorities said the significant housing supply coming onstream in the next few years will help meet rental demand.
In 2023 alone, almost 40,000 homes are expected to be completed across the public and private residential markets – the highest number of home completions in the last five years. Close to 100,000 public and private residential units are expected to be completed from 2023 to 2025.
As these units come onstream, Singaporeans who are currently renting while awaiting the completion of their new homes will vacate their rental units, alleviating tightness in the market.
HDB said it has doubled the supply of flats available under the Parenthood Provisional Housing Scheme, from 800 units in 2021 to about 2,000 units today, to support families that need interim housing while waiting for their new flats to be built. The number of such flats will increase to 4,000 units by 2025.
The authorities said they are relaxing the cap for occupants allowed in larger living quarters of HDB commercial properties – equivalent to or larger than a four-room flat – as well.
Currently, HDB flat owners, as well as HDB commercial property owners and tenants, have to seek HDB’s approval before the tenancy starts.
Residential property owners who now house up to six unrelated persons will need to apply to HDB or URA to include additional occupants, up to a total of eight per property.
Applications to rent out HDB flats or bedrooms may be submitted online via HDB’s e-services. An administrative fee is payable with each application, at $10 per bedroom or $20 per whole flat rented out.
HDB commercial property owners and tenants who wish to rent out their living quarters can apply via the GoBusiness Licensing Portal. The administrative fee is $100 per application.
Owners who wish to rent out larger private homes of at least 90 sq m to up to eight unrelated persons – each will be subject to a minimum stay of three consecutive months – are required to register via URA’s e-services. An administrative fee of $20 is payable with each registration.
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