The rental market softened last month after a brief spurt in March when new leases signed for HDB flats and private apartments jumped by double digits in percentage terms from February.
This slowdown was well within expectations, given that the inflow of foreign professionals tends to be higher at the start of the year, especially just after Chinese New Year, experts noted. Many corporates across industries are downsizing headcounts or letting go of professionals due to cautious economic times. It is also unlikely in mid-year or from April onwards that we will see a significant increase in expatriates seconded to Singapore, which would lend boost to fresh leases. Rentals of private homes are still negatively affected by increased private residential completions, which intensify competition among landlords.
Year on year, rental volume was higher for both segments - reflecting the changing nature of tenancies, where leases are as short as six months.
In terms of rental amounts, private apartment rents were unchanged last month after falling 1.4 per cent in March, while HDB rents fell 0.6 per cent after falling 0.4 per cent in March, according to flash estimates from SRX Property yesterday.
Both have been on a slide, owing to the rising number of home completions combined with little new demand from expatriates.
In terms of rental amounts, private apartment rents were unchanged last month after falling 1.4 per cent in March, while HDB rents fell 0.6 per cent after falling 0.4 per cent in March, according to flash estimates from SRX Property yesterday.
Both have been on a slide, owing to the rising number of home completions combined with little new demand from expatriates.
Rents in the core central region (CCR) were unchanged from March, rents in the rest of the central region (RCR) rose 0.1 per cent and rents in the outside central region (OCR) or suburbs fell 0.1 per cent. Year on year, rents are 5.4 per cent lower overall. CCR rents are down 1.9 per cent; RCR rents are off 8.2 per cent and OCR rents are 6.8 per cent lower.
HDB rents are falling as tenants have many choices, with increased private condominium completions since 2014 and more HDB flats up for sublet as their owners upgrade, said Mr Ong Kah Seng, R'ST Research director.
HDB rents fell 0.3 per cent in the mature estates and were down by 0.9 per cent in the non-mature estates in April. Year on year, rents in mature estates were 3.9 per cent lower and those in non-mature estates 4.8 per cent lower.
The number of private apartments rented out last month fell 10.3 per cent month on month to 3,953 but that was 10.5 per cent higher than a year back.
HDB rental volume fell 2.2 per cent from March to 2,048 but was 5.8 per cent higher year on year.
"Rents are getting very competitive. Any owners who try to keep to their previously transacted rents can be prepared to have difficulties renting out," Mr Lim added.
The Straits Times
The Straits Times
Source: SRX (12 May 2016)