Fewer homes were leased out as well.
Rental prices and volume fall in June
Rents for private condominiums and apartments fell 0.2% last month. The dip in HDB flat rents was steeper at 0.8%.
Compared to June 2017, rental prices of private apartments have fallen 0.3%. From the rental market’s peak in January 2013, private home rental prices have since fallen 19.3%. In the HDB market, rents are down 16% since its peak in August 2013.
The number of residential units tenanted last month have also fallen. 4,637 private condominium units and 1,735 HDB flats were leased last month, with volume falling 1% and 5.8% in both sectors respectively.
Although the number of displaced home owners in the market may have increased due to collective sales, many are cash-rich and may be looking to purchase properties instead of rent.
June holidays lull a possible reason for fall in rental numbers
With the new stamp duty hikes, however, some property analysts are expecting these displaced home owners to turn to the rental market instead as it will now be more expensive to purchase a replacement home. Some could also be looking at temporary housing while re-doing their sums for investing in a new one.
The June school holiday period is also a generally quieter one for the property market and the new cooling curbs could also change the residential rental landscape in the months ahead.
As new launches hit the market, some developers may be offering incentives to buyers in forms of discounts and rebates and buyers may be waiting on these launches.