The rental market for non-landed private homes and HDB flats fared better last month in comparison to the same month last year, despite a slight drop.
Rental prices last month still higher than September 2018
September’s rental prices for condominiums and HDB flats fell 0.4% and 0.3% respectively. Condo rents are still 16.9% lower than the peak in January 2013. Rental prices of units in the core central region fell 1.1%, while the rest of the central region and in the suburbs, rents fell a slight 0.2% and 0.1% respectively.
In the HDB rental market, last month’s rents are 14.8% lower than the peak in August 2013 though 1.1% higher than that of September 2018. Rental prices of the property types within the HDB market have risen since last September with the exception of executive flats. The most popular HDB units with tenants were 3-room flats, which made up 34.9% of the total rental volume. This is followed by 4-room (33.9%), five-room (24.8%) and executive flats (6.3%).
Changes in workforce employments and housing supply may affect rents
In the private non-landed property rental market, lease transactions fell 11.9% from the 4,750 units tenanted in August to just 4,200 in September. It is also 7.3% lower than in the same month last year.
The number of HDB rental transactions have however risen last month, from the 1,750 units in August to the 1,800 units in September. In the months ahead however, analysts are expecting some downward pressure on HDB rents as more units enter the market.
Leasing volumes of condominiums are expected to slow towards the year-end. The slower economic growth and possible restrictions in hiring may affect the rental market for the rest of the year.