The real estate sector has experienced a recent boost in market confidence. While sale prices and volume of private properties are improving steadily, are rental rates also doing the same?
Private property rental prices moving up the chart
January’s figures show a slight increase in rents for condominiums and private apartments. Prices of non-landed private residential properties inched up 0.5% last month. This was following a 0.2% dip last December.
Rents in the Rest of Central Region (RCR) and Outside of Central Region (OCR) grew 2.7% and 0.2% respectively. Only those in the core central region (CCR) saw a dip of 1.3%.
In a year-on-year comparison, rental prices is 0.9% lower than that of January 2017. From the peak of 2013, private property rents have fallen 19.6%.
HDB rents fall for 3 consecutive months
HDB rents, however, have fallen for the third time in 3 consecutive months. HDB flat rents fell 0.2% in January. The only rise came from rents for 4-room flats. Rents for 5-room flats and executive flats doped 0.1% and 2.4% respectively while those of 3-room flats remained unchanged.
More tenants are willing to move into non-mature estates as rents here rose 0.3%. Rents in mature estates, however, fell 0.6%.
Overall, rental volumes have risen. 4,198 non-landed residential units were leased last month, compared to the 3,449 units in December.
In the HDB flat segment, 15.3% more units were leased last month. This increase was perhaps due to the start of the year with changes in living patterns.
Expatriates returning or entering the country, and families may also be moving to be nearing children’s schools or workplace.