The scales of the property rental market have tilted towards HDB flats. While private home rents fell by 0.9% last month, HDB rents rose 0.4%.
Rental market not yet in full recovery
Private property prices is continuing on its climb. The rental market, however, has not responded as well to the buoyant market sentiments.
Over the past couple of years, the number of completed units entering the market has been considerable. That could be part of the reason for falling rents.
Rents for private apartments have fallen year-on-year. Private home rents fell 0.8% from April last year and are 19.6% lower than the January 2013 peak. Rents in the core central region slipped the hardest with a 1.3% decline.
Rents in the city fringe fell 1.1% while that of the rest of central region fell 0.2%. 4,355 units were leased last April. This year, the numbers have shrunk by 1.6%.
HDB rents rise though fewer units tenanted
April’s HDB rents are also lower than last year’s with a 1.8% fall. In comparison with the peak in 2013, they have dipped 15.2%.
While the figures are not as high as that of the private non-landed homes market, the fall may indicate that the market is becoming saturated. Tenants are able to choose from options which may not be priced that differently.
The location could still be the deciding factor for tenants. 1,883 HDB units were tenanted last month, down from the 2,182 units in March. Executive flat rental prices fell 1.5% last month, while 3-, 4- and 5-room flat rents all rose by 0.4%, 0.3% and 0.2%.