New Reporter
04-09-23, 15:00
HDB, condo rents continue uptrend as leasing volumes climb: SRX, 99.co
Aug 30, 2023
CONDOMINIUMS and Housing and Development Board (HDB) flats continued to see healthy leasing demand in July, with both rents and rental volume rising during the month.
Condo rents rose 1.1 per cent from the previous month, based on flash estimates from SRX and 99.co released on Wednesday (Aug 30). Year on year, overall rents were up 21.6 per cent.
All regions recorded month-on-month gains in condo rents. Rents in the Outside Central Region (OCR) had the highest gain at 1.6 per cent, followed by the Rest of Central Region (RCR) at 1.1 per cent and the Core Central Region (CCR) at 0.7 per cent.
Rents in the OCR, RCR and CCR were up 23.2 per cent, 21.7 per cent and 18.6 per cent, respectively, from the same period last year.
Meanwhile, overall rental volumes in July jumped 25.3 per cent on the month to around 7,282 units rented, compared with the 5,810 units rented in June.
This did not come as a surprise to property analysts, who noted that July typically records one of the highest condo rental volumes.
Compared with the same period last year, overall rental volumes were down 7.2 per cent; they were also 6.8 per cent lower than the five-year average volume for the month of July.
This indicates that demand is weaker than in previous years, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. “This could be attributed to price resistance or some tenants shifting to cheaper accommodation in the public housing sector,” she added.
Around 37.4 per cent of total leasing volumes came from the OCR, followed by 34.3 per cent from the RCR and 28.3 per cent from the CCR.
“The influx of students enrolling in international schools pushed up the demand for condos near these schools in July,” said Huttons chief executive Mark Yip, who added that many of these international schools are located in the OCR.
Eugene Lim, ERA Realty Network key executive officer, attributed the rising proportion of tenants moving to the OCR to a disparity in rental expectations between tenants and landlords.
For HDB flats, rents rose 2 per cent on the month and were up 24.1 per cent on the year. Leasing volume was up 11 per cent on the month to 3,320 HDB flats rented and was 9.5 per cent higher on the year.
Rental volumes for HDB flats were also 8.6 per cent higher than the five-year average volume for the month of July.
A majority of flats leased were four-room flats (37.8 per cent), followed by three-room flats (32 per cent) and five-room flats (24.7 per cent). Around 5.4 per cent of HDB flats rented were executive flats.
Although the number of executive flats leased was the smallest, this flat type had the biggest rent growth, at 4 per cent. This was followed by four-room flats at 2.4 per cent, five-room flats at 1.9 per cent and three-room flats at 1.4 per cent.
Compared to the same period last year, rents for larger units, such as executive flats and five-room flats, were up 30.2 per cent and 26.2 per cent, respectively. Meanwhile, four-room flat rents were up 24 per cent, while three-room flat rents were 21.2 per cent higher.
Units in mature estates logged rental gains of 2.1 per cent from the month prior; non-mature estates posted gains of 2 per cent.
Year on year, mature estate rents were up 23.2 per cent, while non-mature estate rents climbed 25.2 per cent.
Looking ahead, Nicholas Mak, chief research officer at Mogul.sg, said he expects the rental growth of private residential properties to plateau, followed by HDB rental rates.
“The upcoming steady stream of newly completed private homes will continue to slow down the pace of rental growth,” he noted.
https://www.businesstimes.com.sg/property/hdb-condo-rents-continue-uptrend-leasing-volumes-climb-srx-99co
Aug 30, 2023
CONDOMINIUMS and Housing and Development Board (HDB) flats continued to see healthy leasing demand in July, with both rents and rental volume rising during the month.
Condo rents rose 1.1 per cent from the previous month, based on flash estimates from SRX and 99.co released on Wednesday (Aug 30). Year on year, overall rents were up 21.6 per cent.
All regions recorded month-on-month gains in condo rents. Rents in the Outside Central Region (OCR) had the highest gain at 1.6 per cent, followed by the Rest of Central Region (RCR) at 1.1 per cent and the Core Central Region (CCR) at 0.7 per cent.
Rents in the OCR, RCR and CCR were up 23.2 per cent, 21.7 per cent and 18.6 per cent, respectively, from the same period last year.
Meanwhile, overall rental volumes in July jumped 25.3 per cent on the month to around 7,282 units rented, compared with the 5,810 units rented in June.
This did not come as a surprise to property analysts, who noted that July typically records one of the highest condo rental volumes.
Compared with the same period last year, overall rental volumes were down 7.2 per cent; they were also 6.8 per cent lower than the five-year average volume for the month of July.
This indicates that demand is weaker than in previous years, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. “This could be attributed to price resistance or some tenants shifting to cheaper accommodation in the public housing sector,” she added.
Around 37.4 per cent of total leasing volumes came from the OCR, followed by 34.3 per cent from the RCR and 28.3 per cent from the CCR.
“The influx of students enrolling in international schools pushed up the demand for condos near these schools in July,” said Huttons chief executive Mark Yip, who added that many of these international schools are located in the OCR.
Eugene Lim, ERA Realty Network key executive officer, attributed the rising proportion of tenants moving to the OCR to a disparity in rental expectations between tenants and landlords.
For HDB flats, rents rose 2 per cent on the month and were up 24.1 per cent on the year. Leasing volume was up 11 per cent on the month to 3,320 HDB flats rented and was 9.5 per cent higher on the year.
Rental volumes for HDB flats were also 8.6 per cent higher than the five-year average volume for the month of July.
A majority of flats leased were four-room flats (37.8 per cent), followed by three-room flats (32 per cent) and five-room flats (24.7 per cent). Around 5.4 per cent of HDB flats rented were executive flats.
Although the number of executive flats leased was the smallest, this flat type had the biggest rent growth, at 4 per cent. This was followed by four-room flats at 2.4 per cent, five-room flats at 1.9 per cent and three-room flats at 1.4 per cent.
Compared to the same period last year, rents for larger units, such as executive flats and five-room flats, were up 30.2 per cent and 26.2 per cent, respectively. Meanwhile, four-room flat rents were up 24 per cent, while three-room flat rents were 21.2 per cent higher.
Units in mature estates logged rental gains of 2.1 per cent from the month prior; non-mature estates posted gains of 2 per cent.
Year on year, mature estate rents were up 23.2 per cent, while non-mature estate rents climbed 25.2 per cent.
Looking ahead, Nicholas Mak, chief research officer at Mogul.sg, said he expects the rental growth of private residential properties to plateau, followed by HDB rental rates.
“The upcoming steady stream of newly completed private homes will continue to slow down the pace of rental growth,” he noted.
https://www.businesstimes.com.sg/property/hdb-condo-rents-continue-uptrend-leasing-volumes-climb-srx-99co