In a bid to meet rental demand, larger HDB flats and private residential properties that are being rented out will be temporarily allowed to house up to eight unrelated persons, up from the current cap of six.

The temporary relaxation of the occupancy cap will be in effect from Jan. 22, 2024 to Dec. 31, 2026.

This was announced in a joint press release by the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) on Dec. 20.

Temporary relaxation of occupancy cap

The types of properties that will have their occupancy cap temporarily increased to eight are:

• 4-room and larger HDB flats
• Living quarters of HDB commercial properties (where the living quarters are equivalent to or larger than a 4-room flat)
• Larger private residential properties of at least 90sqm

The occupancy cap for smaller properties, such as 1 & 2-room, 3-room HDB flats as well as private residential properties smaller than 90 sqm, will remain unchanged -- that is six unrelated persons.

The changes are reflected in the following tables:

Any extension of the relaxed occupancy cap beyond 2026 will be subject to review, accounting for the demand and supply of open market rentals.

Prior approval & registration required

Residential property owners who are currently housing up to six unrelated persons, and wish to include additional occupants up to the cap of eight, would first need to apply to HDB or URA respectively before the tenancy commencement date.

HDB flat owners may submit their applications to rent out HDB flats or bedrooms online via HDB’s e-services.

They will have to pay an administrative fee of S$10 per bedroom or S$20 per whole flat rented out.

HDB commercial property owners and tenants intending to rent out their living quarters can apply via the GoBusiness Licensing Portal.

The administrative fee is S$100 per application.

Owners of larger private residential properties of at least 90sqm are required to register with URA via URA’s e-services, and pay an administrative fee of S$20 for each registration.

If successful, the owner will be authorised to accommodate up to eight unrelated persons on their property, with each occupant required to stay for a minimum of three consecutive months.

Landlords are required to adhere to the occupancy cap and minimise dis-amenities to the public, HDB and URA stated.

The authorities will take strict enforcement action against any infringement of the occupancy cap.

In serious cases of inconvenience caused to the public, their approval or authorisation to rent to up to eight unrelated persons will be revoked or ceased, the authorities said.

Desmond Lee on measures to mitigate rental demand

Minister for National Development Desmond Lee posted about the occupancy cap relaxation on his Instagram page on Dec. 21.

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A post shared by Desmond Lee (@desmond.lee)

Lee said that the temporary relaxation of the occupancy cap is to "better meet [rental] demand" as the authorities anticipate the need to "maintain a healthy rental supply".

It will 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 desire to rent their own space, he said.

However, Lee explained that this temporary measure will only be rolled out for larger properties, such as 4-room HDB flats or equivalently large spaces, which can accommodate more occupants with minimal impact on those around them, so as 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 homeowner’s rental approval," he said.

Lee added that the authorities will review the need to extend this temporary measure, depending on the rental situation in end-2026.

Meanwhile, those who have enquiries regarding the rental of HDB flats, living quarters or private residential properties may reach out to HDB or URA respectively, such as via the HDB e-Feedback form or URA e-Feedback form.

Top image from Unsplash.