Singapore will extend the temporary relaxation of the occupancy cap for larger public flats and private homes until Dec 31, 2028, as authorities continue efforts to manage strong rental demand.

In a joint statement on Jan 16, the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA) said the two-year extension is a temporary measure to help meet sustained demand in the rental market. The policy was first introduced in January 2024 and was originally due to expire at the end of 2026.

Under the relaxed rules, four-room and larger HDB flats, as well as private residential homes of at least 90 square metres, can house up to eight unrelated tenants, up from the previous cap of six. “Unrelated” refers to people not belonging to the same family unit.

Rental Demand Still Strong Despite Supply Growth

The extension comes even as housing supply continues to ramp up. Nearly 100,000 public and private homes were completed between 2023 and 2025, and another 21,000 homes are expected to be completed in 2026, the authorities said.

While the increase in supply has helped cool the market, demand remains elevated.

“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,” HDB and URA noted.

To qualify for the higher occupancy cap, owners of HDB flats and commercial properties with living quarters must seek HDB approval before tenancy begins, using HDB’s e-services or the GoBusiness Portal. Owners of private homes of at least 90 sqm must register their units with URA to be authorised to house up to eight unrelated occupants.

Authorities also stressed that property owners and tenants must minimise dis-amenities to neighbours, warning that approvals can be revoked if serious issues arise.

Experts Say Move Supports Tenants and Stabilises Market

Mr JT Chia, Managing Director at Propertyforsale, welcomed the extension, saying it benefits both renters and landlords.

The move benefits companies who rent private apartments for their migrant workers. By housing 8 employees under one roof, the rental cost will be manageable.

If not for the higher occupancy rate, a company with 16 foreign workers would have to rent 3 different apartment units.

“The relaxation of the occupancy cap is expected to support tenants who are students, low income groups and co-living operators,” he added.

He noted that the HDB rental price has stabilised whereas the private rent has dipped towards second half of 2025.

Possible Further Extension Beyond 2028

HDB and URA  will continue to monitor conditions closely and review whether the temporary measure should be extended beyond 2028.

For now, the policy gives both tenants and landlords greater flexibility, helping to balance affordability concerns with Singapore’s evolving rental landscape.