Home rental prices have remained almost stagnant for the past few months. The rate of decline last year, however, has been gentler than in 2016.
Slower rate of decline in home rents a sign of market picking up
For the private property sector, non-landed home rental prices fell 0.3% last month. HDB rents fell 0.5%. In 2017, private and public home rents fell 0.5% and 3.5% respectively. While rents have been slipping, property prices have recovered rather well.
The resale price index for private non-landed home prices rose 6.2% last year. The recovery was more significant in the second half of last year as buyers and investors are buoyed by the activity in the land sales and new property markets.
Prices of resale HDB flats, however, fell 1.8%. The government’s numerous cooling measures seemed to have successfully put a halt in speculative property-buying.
Related: Renting Property in Singapore
Fewer rentals in the month of December
December is generally a slower month for the rental market as some expatriates move back home for the holiday season, and some for good.
1,414 HDB flats were rented last month, 23.1% lesser than November. 3,188 private non-landed units were tenanted, down 20.2% from November. The number of rental transactions recorded last month were 15% to 20% lower than that in the same month in 2016.
The property market may proceed with caution in the first half of 2018, with things possibly picking up in H2. New properties are expected to reach completion then and should the economy fare as predicted, an expanding workforce is expected. Property analysts expect a 1% to 3% growth in rents by Q4.