Rental prices likely to remain level
Private property rents are back to the same level as a year ago following the 0.1% fall last month. Compared to January 2013’s peak, rental prices of private condominium and apartment units have fallen 19.1%.
Rental volume has also taken a hit with a 4.7% dip in August. 34,935 units were tenanted last month, down from the 5,176 units in July.
The core central region (CCR) fared the best with a 0.4% rise in prices. The CCR consists mainly of the prime districts such as district 9 (Orchard, River Valley) and 10 (Bukit Timah, Holland, Balmoral). Though high-end properties here may have been struggling slightly in terms of finding ready buyers, more seem to be keen in renting units in this area favoured by expatriates and foreigners.
The CCR’s proximity to the city centre and the orchard shopping belt may also boost rents.
In the outside central region (OCR), rents remained steady. Though last months’ rental prices in the CCR rose, it is 1% lower than last year. In the OCR however, rental prices of private properties have risen 1.4%.
Rents of 3- and 4-room HDB flats rose
On the contrary, the rental prices of HDB flats rose 0.1%, with executive flats, 3- and 4-room units leading the way.
Rents of the former rose 1.8% while that of the latter increased by 0.2%. Rental prices of 5-room flats, however, dipped 0.1%. This could possibly be a hint at what tenants are looking at – either very large or considerably smaller unit sizes, often by-passing the mid-range units.
The mature estates also saw more rental activity as rents here rose 0.2%. Rental prices in non-mature estates rose 0.1%. The months ahead may see tenants having more options to choose from, which could dilute the tenant pool as even more units hit the market.