Instead of a wild and dangerous free fall, the price decline in the property rental market has been encouraging in its lack of acceleration.
Property analysts say the “sawtooth” pattern in the fall of rental prices is understandable and manageable. There was a spike in rental volume in March due to the influx of foreign talents after the Chinese new year festivities, followed by a level performance in April which indicated a higher rental volumes for both the private property and HDB rental markets though leases signed now tend to be shorter than 6 months.
Rents in the Outside Central Region (OCR) fell 0.1 per cent in April while that in the core central region (CCR) remained unchanged and in the rest of the central region (RCR) rental prices rose 01. per cent. In a year-on-year comparison however, rental prices have been falling, with a 3.9 per cent dip for HDB flats in mature estates and 5.4 per cent for private condominiums.
The rental volume was however 10.5 per cent higher than in 2015 despite a 10.3 per cent fall from March. Many new completed units were included in the 3,953 units were leased last month. The continued influx of completed new homes entering the market this year may dilute the tenant pool even further and resale units may find it even tougher to secure tenants as the year moves on.