The real estate market seems to be slowing down as the year-end draws close.
October was a relatively slow month for both private property and HDB markets.
Rental market may not be as booming as before
2018 was a quieter year for the private residential property rental market overall.
Over the past 3 months, performance in this sector has remained sluggish. Rents in October slipped 0.7%, following a 0.5% dip in September.
In a year-on-year comparison, the private condominium rental market is 0.1% lower than last year’s and 20% lower than the peak in 2013.
Rental volume up 1.7% as more units find tenants
The lower rental prices may mean tenants have more rental options and hence competition may be fiercer.
More landlords are however able to successfully lease their private condominium units as the number of condos and private apartments lease increase 1.7% last month. 4,207 units were leased and this figure is just 0.5% compared to October 2017.
In contrary, HDB rental prices rose 0.3% last month following a 0.6% decline in September. In comparison to the peak in August 2013 however, HDB rents in October were still 15.4% lower and 1.4% than the same month last year.
Rental transactions did increase by 10.2% with 1,937 units leased in October. Compared to the same month last year, rental volume has risen 8.9%.
The global economic situation may have had some impact on the lull as expatriates relocation packages shrink and companies are hiring within the region or the country.
Immigration policies have also restricted the influx of new citizens thus limiting the pool of property buyers or tenants.
Some analysts are however hopeful that the rental market is on its way to recovery.
See more: 7,214 HDB units launched in November