Higher occupancy cap for HDB flats and private homes extended until 2028 amid strong rental demand

SINGAPORE: The temporary relaxation of the occupancy cap of eight unrelated tenants for the rental of larger public flats and private homes will be extended until Dec 31, 2028.

The two-year extension is a temporary measure to meet sustained rental demand, the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA) said on Friday (Jan 16). 

The occupancy cap was first relaxed in January 2024 and was due to end on Dec 31, 2026. 

The increased cap allows four-room and larger HDB flats, as well as private homes of at least 90sqm, to house up to eight unrelated people - defined as those not from the same family unit - from the previous cap of six. 

The extension comes amid a progressive ramp-up of the supply of public and private housing, the authorities said. 

Nearly 100,000 public and private homes were completed from 2023 to 2025, with an estimated 21,000 homes expected to be completed in 2026, HDB and URA added.

“While the increase in housing supply has helped to alleviate the tightness in the rental market and contributed to the moderation in the increase of residential rents, overall rental demand remains strong,” they added.

Owners of HDB flats, as well as owners and tenants of HDB commercial properties with living quarters, are required to seek HDB’s approval before the tenancy commencement date. 

Applications to rent out HDB flats or bedrooms may be submitted online via its e-services. Owners and tenants of HDB commercial properties who want to rent out their living quarters can apply via the GoBusiness Portal.

Owners of larger private residential properties of at least 90sqm must register their properties with URA through its website to qualify for the higher occupancy cap. 

They will be informed upon successful registration that their property can accommodate up to eight unrelated people. 

Owners and tenants of public flats, HDB commercial properties with living quarters, and private residential properties must adhere to the occupancy cap and minimise dis-amenities to the public, HDB and URA said. 

“The approval or authorisation to rent to up to eight unrelated persons will be revoked or cease in the event of serious dis-amenities,” they said.

“We will continue to monitor the situation in the rental market closely, and review the need to extend the temporary relaxed occupancy cap beyond 2028.”

Ms Christine Sun, chief researcher and strategist of real estate company Realion Group, said that the extension of the raised occupancy cap "is a positive move as it will benefit both tenants and landlords". 

"These changes will enable tenants to share a unit with more people, reducing rental costs and optimising space usage," she said.

Ms Sun added that the relaxation of the occupancy cap is expected to support lower-income groups, students, blue-collar foreign workers, some Singaporeans and large families.

Huttons Asia's senior director for research Lee Sze Teck said that the extension "will provide some relief to tenants and stabilise the rental market".

This comes as rental demand in the private and HDB markets picked up in 2025 while fewer homes were completed, he added. 

"An estimated 91,273 private homes and 39,054 HDB flats were rented out in 2025, 3.1 per cent and 6.5 per cent higher than 2024, respectively," Mr Lee said.

"An estimated 4,544 private homes were completed in 2025, while around 8,000 HDB flats fulfilled their minimum occupation period (MOP). This was lower than in 2024."

Against this backdrop, rents of private homes and HDB flats increased by an estimated 3 per cent and 2 per cent, respectively, he said.

As Huttons expects that the supply of private homes and HDB flats fulfilling their MOP will decrease after 2028, Mr Lee said the relaxation of the occupancy cap could be extended further "depending on the level of demand in the rental market".