HDB Rents Dip 0.3% in May as Leasing Activity Cools From April

HDB rental prices eased 0.3% month-on-month in May 2026, with the overall index slipping to 144.3 from 144.7 in April. On a year-on-year basis, rents were still 1.1% higher, indicating that the HDB rental market remains well-supported even as the pace of growth moderates to a more sustainable level.

Performance varied across towns and flat types. Mature town rents eased 0.5% month-on-month, while Non-Mature town rents firmed by 0.2%. By flat type, five-room rents led with a 0.4% month-on-month gain and four-room rents edged up 0.1%, while three-room and Executive rents slipped 0.8% and 1.6% respectively. This points to a tenant market that remains active but increasingly selective, particularly in the larger flat types.

Leasing volume eased to an estimated 2,595 HDB flats rented during the month, down 7.7% from 2,813 in April. Volume was broadly unchanged year-on-year and remained 3.3% below the five-year May average, indicating that momentum has eased back towards longer-term seasonal norms after a stronger April.

By volume share, four-room flats accounted for the largest segment at 37.8%, followed by three-room flats at 35.3%, five-room flats at 22.0%, and Executive flats at 4.8%. Together, four-room and three-room flats accounted for 73.1% of HDB rental volume in May, showing that tenant demand remained firmly anchored in mid-sized affordable homes.

The steady demand for smaller flat types reflects the affordability-driven nature of the HDB rental market. Tenants seeking lower monthly rents continue to favour three- and four-room flats, while demand for five-room flats remains supported by families seeking more space at a manageable quantum.

HDB rental prices are expected to remain broadly stable, with only modest month-on-month fluctuations across flat types and towns. May’s pullback in leasing volume points to a normalisation after April’s stronger print, while affordability remains a key constraint that should continue to limit aggressive rental increases in the months ahead.

Rental growth in the HDB market is expected to stay measured rather than aggressive in 2026. Demand should remain supported by households seeking more affordable rental options, but wider rental supply choices and tenant price sensitivity are likely to keep overall growth contained. Well-located flats near MRT stations, employment nodes, and established amenities should continue to command stronger tenant interest.

May’s figures point to a healthy HDB rental market that has eased modestly off recent highs while remaining underpinned by steady tenant demand. The market is settling into a more balanced phase, where rental outcomes will be shaped by location, flat condition, accessibility, and pricing discipline rather than broad-based rent escalation.