New Reporter
04-08-23, 10:22
Condo, HDB rents rise; rental volumes recover in June: SRX, 99.co
Jul 31, 2023
RENTAL volumes for both condominiums and Housing and Development Board (HDB) flats recovered in June, based on flash estimates from SRX and 99.co released on Monday (Jul 31).
The number of condo units rented rose 12.5 per cent on the month to around 5,810 units, compared with 5,164 units rented in May. Rents, meanwhile, edged up 0.3 per cent in June after recording a drop in May.
As for the HDB market, rents continued to trend upwards, climbing 1.4 per cent on the month and 24.6 per cent on the year. Volumes, meanwhile, rose 4.6 per cent in June after slipping the month before.
Year on year, overall condo rents were up 24 per cent. Rental volumes, meanwhile, were down 3.9 per cent on the year and stood 8.2 per cent lower than the five-year average volume for the month of June.
Rents in the Core Central Region (CCR) rose 0.8 per cent, while those in the Rest of Central Region (RCR) and Outside Central Region (OCR) dropped by 0.6 per cent and 0.2 per cent, respectively.
CCR rents were up 20.5 per cent on the year, those in RCR rose 24.7 per cent, while in OCR the increase was 25.6 per cent.
Condo rental volumes were at their strongest in the OCR (37.1 per cent), followed by 33.8 per cent from the RCR and 29 per cent from the CCR.
ERA and Huttons attributed the rise in condo rental activity to more foreigners choosing to rent rather than buy property following the cooling measures implemented in April 2023. Of particular concern to foreigners is the increase in additional buyers’ (ABSD) stamp duty of 60 per cent when buying Singapore residential properties.
“The foreigners may have chosen to rent in the interim while waiting for either their PR or citizenship to be approved before buying a residential home in Singapore. This may have pushed up rents in the CCR in June,” said Huttons chief executive Mark Yip.
Meanwhile, rental gains for HDB flats were seen across mature and non-mature estate rents and all room types.
The rise in HDB rental prices was likely due to the increase in tenants seeking rentals, including those who have been priced out of the private market, said property analysts from OrangeTee and ERA.
The bump up in launches in May 2023 may have encouraged HDB upgraders to sell their current flat and rent in the interim so that they do not need to pay ABSD, Hutton’s Yip said.
Rents for units in mature estates rose 1.6 per cent, while those in non-mature estates were up 1.4 per cent. Executive flat rents saw the largest increase at 2.2 per cent, followed by four-room rents, three-room flats and five-room flats, which rose 1.8 per cent, 1.5 per cent and 0.2 per cent, respectively.
Year on year, mature and non-mature rents were up 23.3 per cent and 26.2 per cent. Flat rents were 27.9 per cent higher on the year, with rents for five-room flats rising 26.5 per cent, followed by 25.1 per cent for four-room and 22.1 per cent for three-room.
The number of HDB flats rented stood at around 2,990 units, compared with 2,859 units in May. Volumes increased 4.2 per cent from June 2022 and are 0.8 per cent higher than the five-year average volume for the month of June.
Four-room flats were the most popular, taking up 36.1 per cent of rental volumes in the month, followed by three-room flats (33.2 per cent), five-room flats (24.7 per cent) and executive flats (5.9 per cent).
https://www.businesstimes.com.sg/property/condo-hdb-rents-rise-rental-volumes-recover-june-srx-99co
Jul 31, 2023
RENTAL volumes for both condominiums and Housing and Development Board (HDB) flats recovered in June, based on flash estimates from SRX and 99.co released on Monday (Jul 31).
The number of condo units rented rose 12.5 per cent on the month to around 5,810 units, compared with 5,164 units rented in May. Rents, meanwhile, edged up 0.3 per cent in June after recording a drop in May.
As for the HDB market, rents continued to trend upwards, climbing 1.4 per cent on the month and 24.6 per cent on the year. Volumes, meanwhile, rose 4.6 per cent in June after slipping the month before.
Year on year, overall condo rents were up 24 per cent. Rental volumes, meanwhile, were down 3.9 per cent on the year and stood 8.2 per cent lower than the five-year average volume for the month of June.
Rents in the Core Central Region (CCR) rose 0.8 per cent, while those in the Rest of Central Region (RCR) and Outside Central Region (OCR) dropped by 0.6 per cent and 0.2 per cent, respectively.
CCR rents were up 20.5 per cent on the year, those in RCR rose 24.7 per cent, while in OCR the increase was 25.6 per cent.
Condo rental volumes were at their strongest in the OCR (37.1 per cent), followed by 33.8 per cent from the RCR and 29 per cent from the CCR.
ERA and Huttons attributed the rise in condo rental activity to more foreigners choosing to rent rather than buy property following the cooling measures implemented in April 2023. Of particular concern to foreigners is the increase in additional buyers’ (ABSD) stamp duty of 60 per cent when buying Singapore residential properties.
“The foreigners may have chosen to rent in the interim while waiting for either their PR or citizenship to be approved before buying a residential home in Singapore. This may have pushed up rents in the CCR in June,” said Huttons chief executive Mark Yip.
Meanwhile, rental gains for HDB flats were seen across mature and non-mature estate rents and all room types.
The rise in HDB rental prices was likely due to the increase in tenants seeking rentals, including those who have been priced out of the private market, said property analysts from OrangeTee and ERA.
The bump up in launches in May 2023 may have encouraged HDB upgraders to sell their current flat and rent in the interim so that they do not need to pay ABSD, Hutton’s Yip said.
Rents for units in mature estates rose 1.6 per cent, while those in non-mature estates were up 1.4 per cent. Executive flat rents saw the largest increase at 2.2 per cent, followed by four-room rents, three-room flats and five-room flats, which rose 1.8 per cent, 1.5 per cent and 0.2 per cent, respectively.
Year on year, mature and non-mature rents were up 23.3 per cent and 26.2 per cent. Flat rents were 27.9 per cent higher on the year, with rents for five-room flats rising 26.5 per cent, followed by 25.1 per cent for four-room and 22.1 per cent for three-room.
The number of HDB flats rented stood at around 2,990 units, compared with 2,859 units in May. Volumes increased 4.2 per cent from June 2022 and are 0.8 per cent higher than the five-year average volume for the month of June.
Four-room flats were the most popular, taking up 36.1 per cent of rental volumes in the month, followed by three-room flats (33.2 per cent), five-room flats (24.7 per cent) and executive flats (5.9 per cent).
https://www.businesstimes.com.sg/property/condo-hdb-rents-rise-rental-volumes-recover-june-srx-99co