October saw some fluctuations in the property rental market as condominium rents dipped 0.2% while rental prices for HDB flats rose 0.3%.
Condominium prices 16.9% lower than their peak in Jan 2013
While condominium rents have risen 4.2% from last year, it is still 16.9% lower than its peak in January 2013. In the non-landed residential property rental sector, 4,341 units were leased in October, down 0.8% from the 4,378 units in September.
The largest fall in rental prices of 0.6% came from the core central region. In the rest of the central region and the outside central region, rents fell 0.1% and 0.2% respectively.
Analysts are hopeful for a pickup in demand as multinational companies based in Hong Kong may decide to move their headquarters to Singapore, or at least redeploy their employees here. This may boost the private property rental market in the months ahead.
On a positive note, condominium rents were all in all 3 regions last month in comparison with October 2018. In the core central region, the rest of the central region and the suburbs, rents have risen 6.3%, 4% and 2.8% respectively.
Rents of HDB flats rose but rental volume fell
HDB rents rose 0.3% in October and 1.4% year-on-year, with rental prices of 3- and 4-room flats both climbing 0.4% and 5-room HDB flat rents climbing 3%. However, executive flats rents fell 1.5%. Rental volume for HDB flats also fell last month, by 9.6% with 1,830 units leased, down 4.3% from September’s 1,913 units.
With rents rising, rental demand for HDB flats may be dampened, especially as the supply of flats available for rental is expected to rise next year. This could also put some downward pressure on HDB rental prices.
See more: Demand for HDB flats remain strong