The recent exuberance of private home sales was just slightly dampened by the decline in home rents last month.
Private home rentals slip but only slightly
Home rentals, both private condominiums and HDB flats alike, slipped by 0.3% in November. The largest fall of 1% in rents occurred in the Outside Central Region (OCR). In the Rest of Central Region (RCR), home rental rates fell 0.5% while rents in the Core Central Region (CCR) rose by 0.8%. The CCR which consists mainly of the prime districts 9, 10 and 11 is enjoying more positive sentiments and increased activity in both the sales and rental fronts.
Across the board, rental volume of private non-landed homes dipped 0.2% last month with 3,977 units finding tenants. From the peak in January 2013, private home rentals have fallen almost 20%. But on a positive note, there is a 0.3% year-on-year increase this year in comparison with 2016.
More HDB flats tenanted due to relatively cheaper rent
In the resale HDB rental market, rental volume rose in November. The relatively cheaper rents of public housing units may have accounted for the rise. 1,877 HDB flats were tenanted last month, a 13.8% increase from October and a 0.1% increase year on year. Rental prices of HDB flats are however still 14.7% lower than the peak in August 2013.
Rental rates for 3- and 5-room HDB flats have fallen 1.5% and 0.3% respectively. The rates for 4-room flats remain unchanged. Overall, HDB rents fell 0.5% in November.