reporter2
03-05-12, 03:30
http://www.straitstimes.com/Money/Story/STIStory_792368.html
Private home rental rates go up
Published on Apr 25, 2012
By Gan Yu Jia
THE rent for a private two-bedroom apartment is fast approaching $3,000 a month after rates rose again in February, according to a Savills Research report.
It found that the median rent for non-landed property, excluding executive condominiums, increased by about 1 per cent in February to $3.53 per sq ft (psf).
This works out to a median rent of $2,824 a month for an 800 sq ft apartment, and is a 1 per cent rise from January and 8 per cent up on the same month last year. The median rent for landed homes was $2.77 psf a month in February, up 6 per cent month- on-month and 14 per cent from a year ago.
The report said median rents for both non-landed and landed properties are 'fast approaching their peak levels'.
Savills also found that the value of leases taken out on landed and non-landed homes, excluding exec condos, totalled $16.8 million in February. This was down 8 per cent from January but well up on the $13 million in February last year. The value for the first two months of the year was $35 million, 15 per cent higher than a year ago.
The average monthly rent for prime flats tracked by Savills dipped 2 per cent from the last three months of last year to $5.17 psf a month, and is down 5 per cent from a year ago.
Based on the deals closed by Savills, the average rent for studio apartments and one-bedroom units was $6.21 psf a month in the first quarter of this year.
The report noted that certain smaller units were getting attractive rents, particularly if they are centrally located. 'For instance, a 600 sq ft unit at The Suites at Central along Devonshire Road was rented for $5,000 per month... (and) two 592 sq ft units at Martin Place Residences along Martin Road were let at $4,200 per month,' it said.
The report added that rents were equally attractive among the smallest units: 'Three 334 sq ft units at Prestige Heights along Balestier Road were let for between $2,200 and $2,450 per month'.
Savills said leasing demand was robust in the first two months of this year, with transactions hovering above $3,000 a month. While the 3,446 leasing transactions made in February was a 5 per cent drop from January, they were well up on the 2,767 recorded last February.
Savills expects the number of leases to be buoyant in the September quarter, possibly surpassing that seen this quarter.
But it added that leasing transaction volume for landed homes may fall, 'as supply remains limited and asking rents hit a peak'.
Rents for non-landed homes are expected to keep rising by 1 to 2 per cent in coming months as increasing numbers of smaller units enter the market and rental budgets shrink.
Private home rental rates go up
Published on Apr 25, 2012
By Gan Yu Jia
THE rent for a private two-bedroom apartment is fast approaching $3,000 a month after rates rose again in February, according to a Savills Research report.
It found that the median rent for non-landed property, excluding executive condominiums, increased by about 1 per cent in February to $3.53 per sq ft (psf).
This works out to a median rent of $2,824 a month for an 800 sq ft apartment, and is a 1 per cent rise from January and 8 per cent up on the same month last year. The median rent for landed homes was $2.77 psf a month in February, up 6 per cent month- on-month and 14 per cent from a year ago.
The report said median rents for both non-landed and landed properties are 'fast approaching their peak levels'.
Savills also found that the value of leases taken out on landed and non-landed homes, excluding exec condos, totalled $16.8 million in February. This was down 8 per cent from January but well up on the $13 million in February last year. The value for the first two months of the year was $35 million, 15 per cent higher than a year ago.
The average monthly rent for prime flats tracked by Savills dipped 2 per cent from the last three months of last year to $5.17 psf a month, and is down 5 per cent from a year ago.
Based on the deals closed by Savills, the average rent for studio apartments and one-bedroom units was $6.21 psf a month in the first quarter of this year.
The report noted that certain smaller units were getting attractive rents, particularly if they are centrally located. 'For instance, a 600 sq ft unit at The Suites at Central along Devonshire Road was rented for $5,000 per month... (and) two 592 sq ft units at Martin Place Residences along Martin Road were let at $4,200 per month,' it said.
The report added that rents were equally attractive among the smallest units: 'Three 334 sq ft units at Prestige Heights along Balestier Road were let for between $2,200 and $2,450 per month'.
Savills said leasing demand was robust in the first two months of this year, with transactions hovering above $3,000 a month. While the 3,446 leasing transactions made in February was a 5 per cent drop from January, they were well up on the 2,767 recorded last February.
Savills expects the number of leases to be buoyant in the September quarter, possibly surpassing that seen this quarter.
But it added that leasing transaction volume for landed homes may fall, 'as supply remains limited and asking rents hit a peak'.
Rents for non-landed homes are expected to keep rising by 1 to 2 per cent in coming months as increasing numbers of smaller units enter the market and rental budgets shrink.