Last month’s rental market showed an overall 1.2% increase for rents of non-landed private homes while HDB rents fell 0.1%.
Condominium rental prices and volumes rose in November
November’s condominium rents rose at their strongest pace since January. The figures were positive in all regions with rental prices in the core central region leading the way with a 5.8% increase. Rents in the city fringes or rest of central region and suburbs or outside central region rose 3.7% and 4.4% respectively.
Compared to last November, prices have risen 4.6% though it is still 16% lower than their peak in January 2013. 3,980 private condominiums which were tenanted last month. Rental volume has fallen 7.6% from the month before and is 3.1% lower than last November, but they are 7.5% higher than the 5-year average for the month of November. Analysts expected a drop in private property rental volume due to the usual year-end lull.
In 2020, the supply of new private condominium units may fall to 5,122 or 70% lower than the annual average supply of 17,055 (as recorded in the last 5 years). This means private condo rents could face upward pressure as supply dwindles. There are expectations however for the supply of completed private homes, including executive condominiums, to rise significantly in 2021, 2022 and 2023 to 11,958 units, 15,106 units and 18,637 units respectively.
0.1% fall in HDB rents minimal and could be due to year-end lull
In the HDB rental market, rents fell 0.1% last month, though still 1.6% higher in a year-on-year comparison. From the peak in August 2013, November’s HDB rental prices are still 14.5% lower. 1,842 HDB flats were rented out last month, with rental volume remaining flat from October’s 1,840 units. 34.1% of the units tenanted were 4-room HDB units which have been shown to be most popular. This is followed by 3-room and 5-room flats at 33.4% and 26.5%. Executive flats made up 6% of November’s total rental volume.
For now, occupancy demand is adequate enough to absorb the number of newly completed homes put out there in the market. However, the Monetary Authority of Singapore (MAS) has warned that the tepid economic outlook and a possible supply glut may put downward pressures on rentals despite the current stability in rents.