Rents for private apartments up, snapping 6-month slide

[reporter2]

http://www.straitstimes.com/business...-6-month-slide

Rents for private apartments up, snapping 6-month slide

Feb 16, 2017

Ann Williams


Rents for condominiums and private apartments reversed a six-month slide, rising 1.3 per cent in January from the previous month, according to flash estimates released yesterday by SRX Property.

The rebound was across all locations, with rents going up by 0.9 per cent in the prime areas, 1.6 per cent in the city fringes and 1.3 per cent in outlying areas.

Year on year, private home rents last month are still down 5 per cent from January 2016, and 18.9 per cent off their peak in January 2013.

There is little hope for a sustained recovery for rental rates of private homes going forward, said R'ST Research director Ong Kah Seng.

"January 2017's rental increase could be a one-off exuberance in leasing demand, which is unlikely to be sustainable, given there are still so many private residential units vacant amid substantial new completions in 2015 and 2016," he said.

More private leasings were also achieved last month, with the number of units rented out up by 5.8 per cent to 3,813 units. Year on year, rental volume last month was 0.7 per cent higher than 3,785 units rented in January last year.

In recent times, however, monthly lease take-ups tend to be more volatile as two-year leases have decreased in popularity while the one-year lease has become the norm, Mr Ong noted, which makes it hard to tell if leasing demand is improving based on the number of leases signed each month.

The Housing Board market, meanwhile, saw rents drop 0.6 per cent in January from the previous month, after they edged up by a revised 0.1 per cent in December.

Month on month, rents for four-room, five-room and executive flats declined by 0.8 per cent, 1.5 per cent and 0.3 per cent respectively. Rents for three-room flats inched up 0.2 per cent.

Year on year, rents last month were down by 4.8 per cent from January 2016, and 12.7 per cent lower than their peak in August 2013. The number of flats rented out in January dropped by 16.1 per cent from the previous month to 1,427 flats.

[reporter2]

http://www.businesstimes.com.sg/real...in-january-srx

Rents rise for condos, but ease for HDB flats in January: SRX

Rents for non-landed private homes poised to moderate this year as new unit completions ease

Thursday, February 16, 2017

by Kalpana Rashiwala
[email protected]
@KalpanaBT


RENTALS for non-landed private homes rose in January over December amid an increase in leasing volume, while HDB flat rents and leasing volume headed south over the same period.

The latest flash estimates released by SRX Property on Wednesday morning showed its rental index for private apartments and condos climbed 1.3 per cent month on month in January 2017 after retreating 1.4 per cent in December 2016. The index has contracted 5.0 per cent year on year from January 2016 and is also 18.9 per cent below its peak in January 2013.

SRX Property, in a geographical breakdown, said that rents eased in all three regions on a year-on-year basis - though the smallest decline of 2.9 per cent was posted in the Core Central Region. The rental index for private apartments and condos in the city fringe or Rest of Central Regioneased 6.1 per cent while that for the suburbs or Outside Central Region slipped 5.7 per cent over the same period.

An estimated 3,813 non-landed private homes islandwide were rented in January 2017, reflecting a 5.8 per cent month-on-month increase from the 3,605 units rented in December 2016.

Year on year, rental volume in January 2017 was 0.7 per cent higher than the 3,785 units rented a year ago.

OrangeTee's head of research and consultancy, Wong Xian Yang, said: "Going forward, pressure on private residential rents is expected to persist, given the weak economy, constrained growth in the foreign workforce, and considerable incoming completions of new private homes in 2017.

That said, the drop in rents this year is expected to be moderate as incoming completions in 2017 moves closer to long-term historical levels seen during 2002 to 2013.

Based on data released by Urban Redevelopment Authority, an estimated 14,826 private homes (landed and non-landed combined) are expected to be completed this year - lower than the 20,803 units in 2016, 18,971 units in 2015 and 19,941 units in 2014.

Completions are expected to continue shrinking - to around 9,500 units in 2018, 8,300 units in 2019 and 7,600 units in 2020.

In the HDB segment, SRX Property's rental index eased 0.6 per cent month on month in January 2017 after creeping up 0.1 per cent in December 2016. The index has shed 4.8 per cent y-o-y from January 2016 and is also 12.7 per cent below its August 2013 peak.

On a y-o-y basis, SRX's rental index for HDB flats in mature estates slipped 5.1 per cent; in non-mature estates, the rental drop was 4.5 per cent.

It estimates that 1,427 HDB flats were rented last month - down 16.1 per cent from the previous month's 1,701 units and also 27.7 per cent lower than a year ago.

Mr Wong observed that the HDB rental market remains in the doldrums as competition for tenants continues to be intense.

"Though there are little signs of a recovery in HDB rents, a weak economy could see cost-conscious tenants switching from private apartments/condos towards the HDB rental market, which would help stabilise HDB rents," he added.

[richwang]

The tenant is asking for 8% rental cut, shall I honor it?

[Kelonguni]

The tenant is asking for 8% rental cut, shall I honor it?

Must see your base. If $6,000 cut 8% still can. If $1,500 how to cut 8%?

Maybe can ask tenant 4% friendly reduction onz bo?

[Tomutomi]

8% is just about missing 1 month rental. So it's really depends on how popular is your condo and how many competitors available around .

Even the popular condo nowadays taking 1-2 mths to secure tenant.

Retention is the best strategy for current market.