The number of units tenanted last month have dipped though rental prices are edging up.
Rental prices up while sales volume dip
Rents in both the public and private housing sectors rose 0.2% last month.
In the private non-landed property market, rents rose 0.8% though compared to January 2013’s high, prices are still 18.9% lower. 4,674 units were tenanted from April to May, down 3.2%. HDB rents are still 2.7% lower in a year-on-year comparison and 15.3% lower than the highest point in August 2013.
Some analysts are attributing this to the nearing of the 5-year mark for Build-to-order (BTO) flat owners. After the 5-year Minimum Occupation Period (MOP), owners of these public housing units can rent out entire units.
The recent en bloc sales activity may have also pushed some local homeowners out of their properties and they may be looking to rent large units near their homes while looking for a suitable replacement unit. Often these older units are larger and families may be used to the larger space.
Tenants looking for properties larger properties near home and schools
Private property rental prices in the prime districts remained level last month while that in the city fringes and the Rest Of Central region rose 0.4%. In the Outside Of Central (OCR) regions, rents rose 0.2%.
In the HDB sector, rents for 3-room flats and executive flats fell 0.4% and 0.7% respectively. 4-room and 5-room flat rentals prices, however, rose 1.1% and 0.5%.
Industry experts are expecting rental prices to continue up an upward trend albeit a gentle incline for the rest of 2018.