Singapore’s Housing Development Board (HDB) and Urban Redevelopment Authority (URA) have announced a two-year extension of the temporary relaxation of the occupancy cap for larger HDB flats and private residential properties. This decision is expected to benefit both tenants and landlords by allowing more individuals to share a unit, thereby reducing rental costs and optimising space usage.
The extension is particularly advantageous for Singaporean families, including those upgrading from HDB flats to private condominiums, who require temporary rental housing to avoid incurring Additional Buyer’s Stamp Duty. Larger families can also benefit by staying under one roof, which supports multigenerational living and helps manage rental costs more effectively. “This measure encourages families to stay together and better support elderly family members,” said Christine Sun, Chief Researcher & Strategist of Realion (OrangeTee & ETC) Group.
Landlords stand to gain higher rental returns by leasing to more tenants, a timely benefit given the minimal growth in rental rates over the past year. The increased rental income can help offset rising maintenance costs, management fees, and property taxes.
The policy also aims to retain essential foreign workers by reducing living costs, thereby supporting sectors such as manufacturing, nursing, service, and retail. Furthermore, increasing occupancy per unit could help stabilise the rental market by balancing supply and demand pressures.
However, challenges such as increased noise levels and shared use of common facilities may arise from more people living within the same unit. Despite these potential issues, the extension is seen as a strategic move to optimise living spaces and support the rental market.
