Rental market’s gentle revival

The number of units tenanted last month have dipped though rental prices are edging up.

Bukit Batok East Ave 4. Picture: iProperty

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%.

Clementi Ave 2. Picture: iProperty

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%.

Most tenants were looking for properties near their previous addresses or place of residences or near schools and MRT stations. Demand also tended to lean towards larger units.

Industry experts are expecting rental prices to continue up an upward trend albeit a gentle incline for the rest of 2018.