New Reporter
21-11-23, 15:58
Asking rents fall in Q3 as demand-supply gap in housing rental market closes: PropertyGuru
Asking rents for private residential properties ease while HDB asking rents go up
Nov 16, 2023
RENTS of residential properties are expected to ease further, with asking rents already coming down in the third quarter as demand moderates and more homes are completed to add to supply.
A market report by online property portal PropertyGuru on Thursday (Nov 16) showed that rental demand – which it tracks based on the number of enquiries of all rental listings on its portal – fell 10.4 per cent quarter on quarter in Q3.
Meanwhile, overall rental supply – based on the number of all rental listings on PropertyGuru’s portal – rose 11.3 per cent in Q3.
This resulted in overall asking rents inching down by 2.5 per cent from Q2, marking a second straight quarter of contraction, said Tan Tee Khoon, country manager for Singapore at PropertyGuru.
“Effectively, this is the result of pandemic-induced rental demand pressures having abated,” he added. “With land borders reopened, workers from Malaysia no longer need temporary rental lodgings. As more homes are completed, the number of local households moving into their new dwellings has also increased.”
By property type, the biggest decline was logged in the landed private property segment, with asking rents falling 7.6 per cent in Q3 from the second quarter. Asking rents for non-landed property decreased by 4 per cent, PropertyGuru’s data showed.
In a LinkedIn post last week, Lee Nai Jia, head of real estate intelligence, data and software solutions at PropertyGuru, said: “We’ve observed a noticeable relaxation in asking rents within the Eunos/Paya Lebar region, closely followed by the Orchard Road area.”
The portal’s data showed median asking rents in the Eunos/Payar Lebar and Orchard regions coming down by about 6 per cent in October, compared to the previous month.
https://i.imgur.com/ECOCZ0e.png
“It appears that landlords in these traditionally sought-after locales are adapting to a shift in demand, which has seen a significant decrease from the previous year,” said Lee.
Latest available government data shows overall transacted rents of private residential properties rose 0.8 per cent in Q3, slower than the 2.8 per cent increase in the previous quarter.
The increase in rents for non-landed properties slowed to 0.2 per cent, from 2.3 per cent in the previous quarter. Rentals of landed properties were up 4.4 per cent in Q3, a moderation from the 6.7 per cent increase in Q2.
In the public housing segment, rental demand as measured by PropertyGuru dropped 14.7 per cent quarter on quarter in Q3, while rental supply rose 7.8 per cent. Yet, asking rents for Housing and Development Board (HDB) flats rose 3.5 per cent over the same period.
“In line with rising rents, tenants who typically rented private properties might have moved to explore more affordable options in the HDB rental market,” said Tan.
Those renting out a HDB flat or a single room are also less likely to face financial pressure to lower their rents, he said. “This could be due to their smaller loan amounts or their being less affected by rising interest rates as compared to private housing owners.”
The non-landed private property market appears to have peaked. Asking rents were 4 per cent lower in Q3 compared to the previous quarter, Tan pointed out.
This follows an influx of new private homes in previous quarters, adding to supply available for rent.
In Q2, several projects received their temporary occupation permits, Tan said. These include the 667-unit The Woodleigh Residences, the 1,052-unit Affinity at Serangoon, and the 1,472-unit Riverfront Residences.
“Coupled with completions in the first quarter… there is ample supply to satisfy existing demand,” he said.
Around 9,000 private residential units, excluding executive condos, were also completed in Q3 – the highest number of quarterly completions since Q2 2016, Tan highlighted. This puts the number of completed units in the first three quarters of 2023 at 17,199, more than three times that for the same period in 2022.
Going forward, Tan expects about 20,400 private homes to be completed this year; this would mark the biggest annual supply completion since 2017.
Another 8,959 units are predicted to be completed in 2024, he added. “Asking rents should soften as further supply increases and pressure from domestic demand eases.”
https://www.businesstimes.com.sg/property/asking-rents-fall-q3-demand-supply-gap-housing-rental-market-closes-propertyguru
Asking rents for private residential properties ease while HDB asking rents go up
Nov 16, 2023
RENTS of residential properties are expected to ease further, with asking rents already coming down in the third quarter as demand moderates and more homes are completed to add to supply.
A market report by online property portal PropertyGuru on Thursday (Nov 16) showed that rental demand – which it tracks based on the number of enquiries of all rental listings on its portal – fell 10.4 per cent quarter on quarter in Q3.
Meanwhile, overall rental supply – based on the number of all rental listings on PropertyGuru’s portal – rose 11.3 per cent in Q3.
This resulted in overall asking rents inching down by 2.5 per cent from Q2, marking a second straight quarter of contraction, said Tan Tee Khoon, country manager for Singapore at PropertyGuru.
“Effectively, this is the result of pandemic-induced rental demand pressures having abated,” he added. “With land borders reopened, workers from Malaysia no longer need temporary rental lodgings. As more homes are completed, the number of local households moving into their new dwellings has also increased.”
By property type, the biggest decline was logged in the landed private property segment, with asking rents falling 7.6 per cent in Q3 from the second quarter. Asking rents for non-landed property decreased by 4 per cent, PropertyGuru’s data showed.
In a LinkedIn post last week, Lee Nai Jia, head of real estate intelligence, data and software solutions at PropertyGuru, said: “We’ve observed a noticeable relaxation in asking rents within the Eunos/Paya Lebar region, closely followed by the Orchard Road area.”
The portal’s data showed median asking rents in the Eunos/Payar Lebar and Orchard regions coming down by about 6 per cent in October, compared to the previous month.
https://i.imgur.com/ECOCZ0e.png
“It appears that landlords in these traditionally sought-after locales are adapting to a shift in demand, which has seen a significant decrease from the previous year,” said Lee.
Latest available government data shows overall transacted rents of private residential properties rose 0.8 per cent in Q3, slower than the 2.8 per cent increase in the previous quarter.
The increase in rents for non-landed properties slowed to 0.2 per cent, from 2.3 per cent in the previous quarter. Rentals of landed properties were up 4.4 per cent in Q3, a moderation from the 6.7 per cent increase in Q2.
In the public housing segment, rental demand as measured by PropertyGuru dropped 14.7 per cent quarter on quarter in Q3, while rental supply rose 7.8 per cent. Yet, asking rents for Housing and Development Board (HDB) flats rose 3.5 per cent over the same period.
“In line with rising rents, tenants who typically rented private properties might have moved to explore more affordable options in the HDB rental market,” said Tan.
Those renting out a HDB flat or a single room are also less likely to face financial pressure to lower their rents, he said. “This could be due to their smaller loan amounts or their being less affected by rising interest rates as compared to private housing owners.”
The non-landed private property market appears to have peaked. Asking rents were 4 per cent lower in Q3 compared to the previous quarter, Tan pointed out.
This follows an influx of new private homes in previous quarters, adding to supply available for rent.
In Q2, several projects received their temporary occupation permits, Tan said. These include the 667-unit The Woodleigh Residences, the 1,052-unit Affinity at Serangoon, and the 1,472-unit Riverfront Residences.
“Coupled with completions in the first quarter… there is ample supply to satisfy existing demand,” he said.
Around 9,000 private residential units, excluding executive condos, were also completed in Q3 – the highest number of quarterly completions since Q2 2016, Tan highlighted. This puts the number of completed units in the first three quarters of 2023 at 17,199, more than three times that for the same period in 2022.
Going forward, Tan expects about 20,400 private homes to be completed this year; this would mark the biggest annual supply completion since 2017.
Another 8,959 units are predicted to be completed in 2024, he added. “Asking rents should soften as further supply increases and pressure from domestic demand eases.”
https://www.businesstimes.com.sg/property/asking-rents-fall-q3-demand-supply-gap-housing-rental-market-closes-propertyguru