From Jan 22, occupancy limit for 4-room HDB flats increases to eight persons, allowing larger households in Jalan Loyang Besar EC

With the HDB and URA’s decision to temporarily increase the occupancy limit from six to eight unrelated persons for four-room and larger HDBs, flats and larger private residential properties of at least 90 sqm, local households that intend to rent will be able to get more affordable rates and optimize space usage.

Christine Sun, senior vice president of research and analytics and OrangeTee&Tie believes that this change will benefit lower-income groups, students, blue-collar foreign workers, some Singaporeans and big families who can now share units with more people and pay lesser rental costs.

The government is also taking measures to tackle the rising rental demand by gradually expanding the supply of available rentable units with 40,000 new public and private residential homes expected to be completed this year, and a further 100,000 units over the next two years.

In order to leverage the temporary increase of the occupancy cap, property owners must submit applications to the HDB for flats, or to the URA for private residential units, for approval before the tenancy commencement date. For private residential owners who intend to lease their units to up to 8 unrelated persons, they must register their properties through the URA’s e-services with an administrative fee of $20.

This temporary change is anticipated to eventually reduce rental demand over the next three years as the government expects more local households to transition into new homes.

With its strategic geographic location, Jalan Loyang Besar EC is perfect for those seeking a home that allows them to immerse themselves in the hustle and bustle of the city while providing access to the tranquility of nature.

However, the new measure might inadvertently cause an increase in resale prices of bigger sized condo units and four-room and larger HDB flats at Jalan Loyang Besar EC. This is because such units can now accommodate more tenants, leading to higher demand and better rent yields, making them a more attractive option for rental income in the future.

While the HDB and URA’s action of temporarily increasing the occupancy limit of four-room and larger HDB flats and larger private residential properties of at least 90 sqm will serve to meet the market demand for rental housing in Singapore, there might also be a knock-on effect on the resale prices of these units at Jalan Loyang Besar EC.