Singapore to Temporarily Increase Tenant Limit for Larger Homes to Meet Rising Rental Demand

SINGAPORE — To address heightened rental demand, the number of tenants allowed in larger HDB flats and private properties will temporarily increase for the next three years. From Jan 22, 2024, to Dec 31, 2026, properties such as four-room HDB flats and private residences of at least 90 sqm can accommodate up to eight unrelated tenants, up from the current cap of six, announced the HDB and URA in a joint statement on Dec 20.

National Development Minister Desmond Lee noted that the rental market has seen significant pressure, with rental rates increasing by around 20% since early 2023. This trend was fueled by a surge in demand following the pandemic-related construction delays and the return of expatriates and foreign students. Before that, private rental prices surged nearly 30% in 2022, the highest annual growth since 2007, with HDB rentals similarly rising at unprecedented rates.

To mitigate these pressures, Singapore plans to complete nearly 100,000 residential units by 2025, freeing up rental units as Singaporeans transition to their new homes. Minister Lee emphasized the importance of maintaining a balanced rental supply to support residents and expatriates awaiting permanent housing or looking for short-term rentals.

The new tenant limit applies only to larger properties to preserve community living standards, and authorities will continue to monitor compliance closely, with penalties in place for any violations. Nearly 40,000 homes are expected to be completed across Singapore’s public and private markets in 2023, marking a significant increase in housing availability.

To streamline the rental process, property owners hosting more than six tenants must apply to HDB or URA, with relevant fees for registration. The HDB also announced an expansion of its Parenthood Provisional Housing Scheme to provide interim housing for families awaiting the completion of their new flats, doubling available units to 4,000 by 2025.