Private homes are getting more eyeballs from tenants as rents rose by 0.2% in July, although prices are still 18.9% lower than that in the peak of January 2013. The volume of private homes tenanted has reached 4,834 last month. Part of the reason for the rise could be due to the increase in the number of qualified expatriates with larger housing budgets entering the tenancy market once more.
Though the economy has yet to make a full turnaround, sentiments in the real estate sector have been improving. While some property experts are hoping for a change in governmental policies which could build the market back up, private home rental is likely to continue to do well in H2.
The HDB rental market is, however, facing some challenges as more families are now able to purchase a flat directly from the authorities, and quite soon too. Those who are unable to secure a new flat or those who are able to afford private properties are now focusing on the private property market, especially as new condo prices have been rather competitive. New immigration laws which restricted the influx of low-skilled workers may have also had a diminishing effect on the HDB market. The balance of rental demand between mature and non-mature estates have already shifted slightly as rents in the former dipped 0.2% while in the latter, it rose by 0.1%.
Across the board, property prices are expected to stabilize by 2018 and as more private condominium developments reach completion and units become immediately available.