SINGAPORE: Software engineer Jeffrey, 26, thought he had adulthood all figured out when he moved into a sleek one-bedroom condominium unit near Somerset in July last year. 

He had the freedom to cook for himself and host friends, and he no longer had to commute to Orchard for work from Simei, where he had been living with his parents.

He paid S$3,200 in monthly rent, which was within his budget, but Mr Jeffrey did not factor in additional maintenance costs, such as air-conditioner cleaning, which all added up.

"The air-conditioning cleaning cost about S$260 for four cleanings over one year. Then, there were unexpected expenses like aircon gas top-ups and compressor cleaning, which added over S$400 in extra costs," he said, adding that his monthly utility bill of over S$100 was also higher than expected. 

When he was laid off in May this year, Mr Jeffrey, who declined to give his full name, had to return to the family nest.

“In the end, I thought it would be better to save more money for my future house by moving back,” he said.

Mr Jeffrey is part of a growing number of young Singaporeans who have returned to live with their parents in the past couple of years, as soaring rents and economic uncertainty force them to rethink the cost of independence.

The trend of singles moving out to rent - which goes against the conventional Singaporean path of graduating from university, getting a job, tying the knot and buying a Build-to-Order (BTO) flat - picked up during the pandemic four years ago.

That was when many single adults, who suddenly had to work from home, found themselves craving more privacy and space.

The increased demand, coupled with tight supply of condo units, drove rental prices to record highs. Overall, data from the Urban Redevelopment Authority showed that Singapore’s rental price index had jumped by 55 per cent from end-2020 to end-2023.

Related:HDB loan limits tightened in new property cooling measure; eligible first-time buyers to get higher grants of up to S$120,000 NDR 2024: Singles applying for BTO flats near parents to have priority; low-income couples to get higher grant

Last December, National Development Minister Desmond Lee attributed the sharp rise in residential rents to strong demand and construction delays. He said housing supply had been ramped up to mitigate this, with nearly 100,000 homes set to be completed by 2025.

Mr Lee added that to support the rental market, the cap on unrelated tenants in larger HDB flats and private properties would be raised from six to eight until 2026.

Since then, rents have softened. According to data from the Singapore Real Estate Exchange (SRX) and property portal 99.co, condominium rental prices have declined since 2023, though they then rose slightly, by 0.9 per cent, in July.

Nonetheless, there are those who have waded into the rental market and had enough.

Ms Kelly Roxanne, who rented a studio apartment in Novena for S$2,300 in 2021, decided it was time to pack up a year later when her landlord asked for 22 per cent more. 

Even before then, she realised halfway through her lease that she was “bleeding money” every month through rent, household expenses and daily necessities.  

“It was difficult to move back, even though it was a practical decision. But I don’t regret having that experience of renting because I had the chance to step out of my comfort zone,” said the 34-year-old regional marketing communications manager, who now lives with her mother and grandmother in their Bishan Housing and Development Board (HDB) flat.  

Likewise, Mr James Rainier, 33, moved back with his parents in 2023 after a year of renting when his landlord wanted to raise the rent from S$2,300 to S$3,000.

Additionally, unexpected medical expenses from a cancer diagnosis and high costs related to his dog's hospitalisation drained his savings.

So moving back was an easy decision for Mr Rainier, who has two siblings. He is now healthy and works as an entrepreneur in the media sector. 

“My mum and I missed each other. I also felt lonely in my placefbjili, and it didn’t help that I was sick most of the time, which made me too tired to do household chores.” 

Ms Kelly Roxanne, who rented a studio apartment in Novena for S$2,300 in 2021, decided it was time to pack up a year later when her landlord asked for 22 per cent more. (Photo: TODAY/Lim Li Ting)

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