Condo rents fall again in April after a slight recovery in March: SRX, 99.co
Leasing volumes in both the private and HDB markets rise as landlords take a more rational approach to rent out their units
SINGAPORE condominium rents fell again in April after a temporary respite in March, based on flash estimates released by SRX and 99.co on Friday (May 17).
Rents in the Housing and Development Board (HDB) market continued to climb for the third straight month, and leasing volumes for both markets grew.
Condo rents inched down 0.4 per cent month on month, and were 4.6 per cent lower on the year. Two out of three regions recorded a month-on-month drop in rents, except for the Core Central Region (CCR), where rents inched up 0.1 per cent.
Rents in the Outside Central Region (OCR) fell by 0.5 per cent, and rents in the Rest of Central Region (RCR), by 0.2 per cent.
“This decline in rental prices brings positive news for expatriates, as it means that the cost of accommodation is becoming more affordable,” said Christine Sun, chief researcher and strategist at Orangetee Group.
She added that this could make Singapore more attractive to multinational companies, which could boost the expat workforce.
Year on year, rents across all regions were down. CCR, RCR and OCR rents declined by 5.2 per cent, 4.3 per cent and 4.1 per cent, respectively.
Condo rental volumes rose 3.1 per cent on the month to around 5,874 units rented, from the 5,699 units rented in March. Year on year, volumes were 4.4 per cent higher, and 6 per cent lower than the five-year average volume for the month of April.
Huttons Asia CEO Mark Yip attributed the rise in volumes to landlords taking a more rational approach to renting out their condos quickly instead of leaving them empty.
“With inflation staying high, tenants have less to allocate towards housing and they continue to search for more affordable housing,” he noted.
The OCR outpaced the other regions slightly in leasing transactions, accounting for 35.4 per cent of total volumes.
This was followed by the CCR, which contributed to 32.4 per cent of total volumes. The RCR accounted for 32.1 per cent.
“With the majority of the recently completed units located in the OCR, we are seeing more aggressive competition for tenants,” observed ERA Singapore key executive officer Eugene Lim.
99.co chief and data analytics officer Luqman Hakim believes the current surplus in condo supply could continue to suppress condo rents in the near term.
In contrast, HDB rents continued to chart new all-time highs. In the month of April, rents were up 0.3 per cent on the month and rose 7.6 per cent on the year.
Mature estate rents rose 0.7 per cent from March, while those for non-mature flats dropped 0.3 per cent. Rents in both types of estates rose year on year – mature estate rents went up 7.8 per cen t,
Orangetee’s Christine Sun says the decline in condo rentals brings positive news for expatriates, as it means that the cost of accommodation is becoming more affordable and this could make Singapore more attractive to multinational companies.
while those for non-mature estates gained 7.3 per cent.
An increase in rents was observed across all room types, with executive flat rents leading the pack with a 10.1 per cent gain. This was followed closely by four-room flat rents, which rose 8.6 per cent. Rents for five-room flats were up 7.4 per cent; those for three-room flats rose 6.4 per cent.
HDB rental volumes jumped 9.2 per cent to 2,941 flats rented in April, from 2,692 units rented in March. Year on year, volumes were down 9.5 per cent, and 9.7 per cent lower than the five-year average volume for the month of April.
Four-room flats accounted for 36.9 per cent of HDB rental volumes during the month, followed by 33.3 per cent from three-room flats, 24.4 per cent from five-room flats and 5.4 per cent from executive flats.