Private rental prices dip 0.9% month on month in Oct for ninth consecutive decline

[reporter2]

http://www.businesstimes.com.sg/real...cutive-decline

Private rental prices dip 0.9% month on month in Oct for ninth consecutive decline

By Nisha Ramchandani

[email protected]@Nisha_BT

12 Nov


PRIVATE rental prices continued to fall in October, marking the ninth consecutive monthly decline in rental prices as rents dipped 0.9 per cent month on month, according to SRX Property.

Prices have decreased 5.1 per cent since January, SRX said in its flash report on the Non-landed Private Residential Price Index for Rentals. Meanwhile, rents were down 5.3 per cent year on year in October.

Non-landed private residential units in all three sectors (Core Central Region, Rest of Central Region and Outside Central Region) experienced declines in rent of 0.7 per cent, 1.1 per cent and 1.5 per cent respectively.

"The continued drop in rents is expected; as it is currently a tenants' market. Tenants have strong bargaining power as the current supply glut and declining expat demand are pushing down rents," said ERA Real Estate.

The report also showed that rental volumes had dropped slightly as some 3,208 non-landed private residential units were rented in October. This is down 1.3 per cent from September.

However, rental volumes in October were 11.8 per cent higher year on year.

"The downtrend for private property rents has also affected the HDB rental market; in particular the demand and rents for the larger flat types," noted ERA. "The competition for tenants from suburban private property owners that are lowering their rents for family-sized units to S$2,500 to S$3,500 a month are drawing tenants away from the HDB rental market."

ERA expects this trend to continue since some 60 per cent of newly completed private residential units are in suburban areas. However, the HDB rental market will continue to experience demand from tenants with monthly rental budgets of S$2,500 or lower.

[catsick]

As can be seen , the glut is biggest in the OCR as the supply there is biggest , also as prices drop in more central locations people currently in the ocr will be tempted back to more central locations at lower prices ..

This is a reversal of the big move higher in rents in 2005-2007 when a big influx of FT pushed rents right up , renters in prime areas had to move out to east coast or ocr as prices went up too high , we should see a reversal as rents drop , the question is who will be living in the shoeboxes in the ocr when they are all built ?

[teddybear]

I had already warned "investors" buying OCR private properties about the risk, but they don't want to listen, what can I say?????

Some more got people telling everyone of us here that buying OCR like JGateway at >$1700 psf is great investment because of JLD great prospects etc etc! They don't know the great prospects will then shift to PLD, WLD, YLD in future etc?

As can be seen , the glut is biggest in the OCR as the supply there is biggest , also as prices drop in more central locations people currently in the ocr will be tempted back to more central locations at lower prices ..

This is a reversal of the big move higher in rents in 2005-2007 when a big influx of FT pushed rents right up , renters in prime areas had to move out to east coast or ocr as prices went up too high , we should see a reversal as rents drop , the question is who will be living in the shoeboxes in the ocr when they are all built ?

[lajia]

Hello use your pea brain la. OCR u know how big or not? CCR rental drop, partially because of high networth in flow of talents and expat reduce or their allowance reduce, this is a clear trend, so some of them move to outter region. And OCR rental reduced are not across the broad, so large area. Some up some down for sure depending on their occupation location. Buy where the jobs are and u will not go wrong. Unless your CCR rental price is going to drop nearer to the OCR or RCR, if not, sorry, the trend is clear la. But of course there are still pool of them who would like to stay in CCR but this pool has reduced.
unless garmen do something to the policy if not, this trend will continue. So buy OCR at selected area....and not say dont buy.....

I had already warned "investors" buying OCR private properties about the risk, but they don't want to listen, what can I say?????

Some more got people telling everyone of us here that buying OCR like JGateway at >$1700 psf is great investment because of JLD great prospects etc etc! They don't know the great prospects will then shift to PLD, WLD, YLD in future etc?

[teddybear]

Just by using my pea brain, I am able to make $MILLIONS of dollars in investment..........

Have you make $MILLIONS? If not, check whether you have brain or not?

Hello use your pea brain la. OCR u know how big or not? CCR rental drop, partially because of high networth in flow of talents and expat reduce or their allowance reduce, this is a clear trend, so some of them move to outter region. And OCR rental reduced are not across the broad, so large area. Some up some down for sure depending on their occupation location. Buy where the jobs are and u will not go wrong. Unless your CCR rental price is going to drop nearer to the OCR or RCR, if not, sorry, the trend is clear la. But of course there are still pool of them who would like to stay in CCR but this pool has reduced.
unless garmen do something to the policy if not, this trend will continue. So buy OCR at selected area....and not say dont buy.....

[lajia]

be humble.....don't count on your luck and silver spoon... good for you if u still make millions with your bare hands which command respect.

Just by using my pea brain, I am able to make $MILLIONS of dollars in investment..........

Have you make $MILLIONS? If not, check whether you have brain or not?

[teddybear]

Those with silver spoon could not count on themselves to be successful and did not achieve with their bare hands and do not command respect?

Do your statements apply to all those Prime Minister who are previous Prime Minister's son? You are telling us they did not get up there on their own bare hand and hence do not command respect????????????????

be humble.....don't count on your luck and silver spoon... good for you if u still make millions with your bare hands which command respect.

[lajia]

I am only referring to you....u are no where near them nor will I compare u with them....just u..no need to bring in others..

Those with silver spoon could not count on themselves to be successful and did not achieve with their bare hands and do not command respect?

Do your statements apply to all those Prime Minister who are previous Prime Minister's son? You are telling us they did not get up there on their own bare hand and hence do not command respect????????????????

[august]

Er... OCR rentals including HDB have indeed been dropping. Can corroborate with agents or other sources.

[lajia]

yes they are dropping.....
did JE HDB rental drop?

http://www.hdb.gov.sg/fi10/fi10323p....t?OpenDocument

Er... OCR rentals including HDB have indeed been dropping. Can corroborate with agents or other sources.