journo
07-09-22, 10:26
According to Savills, rents for luxury condominiums saw a quarterly increase of 7.6% in the second quarter of 2022
September 6, 2022
According to a study report published by Savills Research, monthly rentals for high-end non-landed private residential developments increased by 7.6% quarter over quarter in 2Q2022, reaching $4.79 psf. This represents the largest quarterly increase seen since 1Q2014. Additionally, this quarter represents the sixth consecutive quarter in which monthly rents for high-end condominiums tracked by the company have increased.
The Urban Redevelopment Authority (URA) has revealed that the quarterly rental rates of private residential properties increased by 6.7% year-over-year in the second quarter of 2022, marking the seventh consecutive quarter of growth. This increase was driven by higher rents for both landed and non-landed properties. While rentals of landed properties increased by 3.2% quarter over quarter, rentals of non-landed properties increased by 7.1% quarter over quarter.
Rents for non-landed properties rose by 7.7% on a quarter-over-quarter basis in both the Core Central Region (CCR) and the Outside Central Region (OCR). The quarterly increase in rents for non-landed properties in the Rest of Central Region (RCR) was 5.9%.
The increase in rent takes place despite the fact that the amount of leases signed for privately owned residential units has fallen for the third consecutive quarter. There were 20,751 leasing transactions that were registered during the second quarter of 2022, which is a decline of 8.7% quarter over quarter. According to the report's explanation, "this reduction in leasing volume does not suggest weaker rental demand; rather, it may be attributable to restricted completions, which are influenced by construction delays."
In the second quarter of 2022, the number of transactions involving the leasing of private non-landed homes decreased by 8.7% from the previous quarter to 19,545. The number of transactions involving non-landed homes in CCR registered the most significant decrease, falling by 13.3% from the previous quarter to 5,780. Both RCR and OCR went down, with RCR falling by 6.2% and OCR falling by 7.1%. According to Savills Research, the fall in CCR may be the result of their being less accessible stock. It is also mentioned that renters have been driven to seek cheaper accommodation by migrating to less prime places as a result of rising rents.
In the meantime, the number of transactions involving the leasing of private landed dwellings decreased by 7.7% quarter over quarter to a total of 1,206 in the second quarter of 2022. In the second quarter of 2022, the vacancy rate for private residential properties rose by 0.1 of a percentage point (pp) to 5.4%, reversing the downward trend that had been present for the previous two quarters. The reversal is being supported by new completions of 2,682 units in non-landed private dwellings. This figure is more than quadruple the 819 units that were registered in the preceding quarter. Because of this, the percentage of non-landed private dwellings that are vacant increased to 5.6%. In the meantime, the vacancy rate for landed homes remained the same in the second quarter of 2022 at 4.7%.
The CCR was the only category that had a reduction in the vacancy rate across all areas, falling by 0.7 of a percentage point to 7.4%. This was the case. In the second quarter of 2022, the vacancy rates in the RCR and OCR increased by 0.5 of a percentage point to 6.6% and 3.8%, respectively.
According to Savills Research, private house rentals have already jumped by 11.7% in the first half of this year. Looking ahead, this bodes poorly for the housing market. It has increased its predictions for year-over-year rental growth for 2022, moving them from a range that was expected to be between 10% and 15% to a higher range that is expected to be between 15% and 20%. According to the analysis, "it is probable that rental price hikes will continue with a 5% year-over-year rise in 2023."
September 6, 2022
According to a study report published by Savills Research, monthly rentals for high-end non-landed private residential developments increased by 7.6% quarter over quarter in 2Q2022, reaching $4.79 psf. This represents the largest quarterly increase seen since 1Q2014. Additionally, this quarter represents the sixth consecutive quarter in which monthly rents for high-end condominiums tracked by the company have increased.
The Urban Redevelopment Authority (URA) has revealed that the quarterly rental rates of private residential properties increased by 6.7% year-over-year in the second quarter of 2022, marking the seventh consecutive quarter of growth. This increase was driven by higher rents for both landed and non-landed properties. While rentals of landed properties increased by 3.2% quarter over quarter, rentals of non-landed properties increased by 7.1% quarter over quarter.
Rents for non-landed properties rose by 7.7% on a quarter-over-quarter basis in both the Core Central Region (CCR) and the Outside Central Region (OCR). The quarterly increase in rents for non-landed properties in the Rest of Central Region (RCR) was 5.9%.
The increase in rent takes place despite the fact that the amount of leases signed for privately owned residential units has fallen for the third consecutive quarter. There were 20,751 leasing transactions that were registered during the second quarter of 2022, which is a decline of 8.7% quarter over quarter. According to the report's explanation, "this reduction in leasing volume does not suggest weaker rental demand; rather, it may be attributable to restricted completions, which are influenced by construction delays."
In the second quarter of 2022, the number of transactions involving the leasing of private non-landed homes decreased by 8.7% from the previous quarter to 19,545. The number of transactions involving non-landed homes in CCR registered the most significant decrease, falling by 13.3% from the previous quarter to 5,780. Both RCR and OCR went down, with RCR falling by 6.2% and OCR falling by 7.1%. According to Savills Research, the fall in CCR may be the result of their being less accessible stock. It is also mentioned that renters have been driven to seek cheaper accommodation by migrating to less prime places as a result of rising rents.
In the meantime, the number of transactions involving the leasing of private landed dwellings decreased by 7.7% quarter over quarter to a total of 1,206 in the second quarter of 2022. In the second quarter of 2022, the vacancy rate for private residential properties rose by 0.1 of a percentage point (pp) to 5.4%, reversing the downward trend that had been present for the previous two quarters. The reversal is being supported by new completions of 2,682 units in non-landed private dwellings. This figure is more than quadruple the 819 units that were registered in the preceding quarter. Because of this, the percentage of non-landed private dwellings that are vacant increased to 5.6%. In the meantime, the vacancy rate for landed homes remained the same in the second quarter of 2022 at 4.7%.
The CCR was the only category that had a reduction in the vacancy rate across all areas, falling by 0.7 of a percentage point to 7.4%. This was the case. In the second quarter of 2022, the vacancy rates in the RCR and OCR increased by 0.5 of a percentage point to 6.6% and 3.8%, respectively.
According to Savills Research, private house rentals have already jumped by 11.7% in the first half of this year. Looking ahead, this bodes poorly for the housing market. It has increased its predictions for year-over-year rental growth for 2022, moving them from a range that was expected to be between 10% and 15% to a higher range that is expected to be between 15% and 20%. According to the analysis, "it is probable that rental price hikes will continue with a 5% year-over-year rise in 2023."