Following 2 months of decline, rents for private residential properties have finally risen slightly by 0.8%; this is also 2.7% higher in a year-on-year comparison with July 2018. HDB flat rents have remained flat.
More condominiums and HDB flats tenanted last month
The volume of units leased however has increased for both property types.
Last month saw a 13% increase in the number of private condominium units leased with 5,408 units finding tenants last month. Compared to last July however, rental volume for this segment fell by 0.9%.
Non-landed properties in the core central region saw the largest rise in rents of 1.1%; in the suburbs and city fringes, rental prices grew 1% and 0.3% respectively.
In the prime districts, the number of luxury homes may have decreased as some older developments made way for newer projects following en bloc sales. Hence, the squeeze on availability could have tipped the scale slightly towards the side of the landlords.
Rental demand healthy with rents rising in some segments
In the HDB market, rents have remained flat, though, in comparison to July 2018, it is now 1% higher. Rents for 3-room and executive flats rose 1% and 2.5% respectively while that of 4- and 5-room flats dipped 0.9% and 0.5% respectively.
In non-mature estates, HDB flat rents rose 0.4% while those in mature estates fell 0.4%. HDB rents have declined 14.5% since its peak in August 2013.
The HDB rental market, however, seems to be picking up as the number of flats tenanted last month rose to 6.1% higher than the 5-year average for the month of July.