Condominium leasing volumes increase by 35.1%: SRX, 99.co; HDB, condo rentals go up i

Condominium leasing volumes increase by 35.1%: SRX, 99.co; HDB, condo rentals go up in July

July saw a 0.9% rise in condo rates and a 1.4% increase in HDB rents compared to June.

August 20, 2024

CONDO rental volumes resumed their upward trend in July, increasing 35.1% month-over-month and 0.9% from June levels.

According to flash estimates issued on Tuesday (Aug 20) by SRX and 99.co, the number of units rented in July was 8,133, up from 6,020 the previous month.

There was a 3.8% increase above the five-year average rental volume for July, and a year-on-year increase of 11.4%.

The Outside Central Region (OCR) accounted for 38.2% of the total volume, the Rest of Central Region (RCR) for 33.4%, and the Core Central Region (CCR) for 28.4%.

The month of July saw a 0.9% increase in condo rentals. The RCR saw a 1.4% rise in prices, the OCR a 1.1% increase, and the CCR a 0.1% increase.

Nonetheless, beginning in July 2023, total rentals fell 5% from the previous year. When broken down by area, prices fell 6.3% in the CCR and 4.4% in the OCR and RCR.

Condo rentals may be seen as "more affordable" by tenants returning from the June vacations with their families, according to 99.co's chief data and analytics officer Luqman Hakim. A price floor that condo landlords can afford to pay their mortgages has probably been achieved, he noted.

Condo rental inventory may expand later this year, which might lead to price drops or stability, as pointed out by Luqman. This is because, starting in September, the Ministry of Manpower's new Complementarity Assessment Framework criteria will determine whether or not employment permits held by foreign nationals may be extended.

In light of the current geopolitical climate, economic uncertainty, and high business expenses, chief researcher and strategist Christine Sun of OrangeTee stated: "Many companies have paused hiring and are generally proceeding with caution."

HDB rental rates and occupancy levels are also increasing

Also in July, prices at the Housing and Development Board (HDB) increased by 1.4% compared to June.

In fully developed estates, rents rose 1.5%, whereas in less developed estates, they rose 1.2%.

Apartments with three bedrooms had a 1.7% increase in price, while those with five bedrooms saw a 1.2% increase, and those with four bedrooms saw a 1.1% increase.

In terms of growth year over year, total rentals increased 4.7%, with mature estates seeing a 4.9% increase and non-mature estates a 4.4% increase.

Apartments with three bedrooms had the most year-on-year price increases at 5.2%, followed by apartments with five bedrooms at 5.1%. The rent for executive apartments increased by 4.7%, while the rate for four-room apartments increased by 3.8%.

There was a 13.8% month-on-month rise in HDB volumes in July, with 2,993 apartments leased out, up from 2,631 in June.

In comparison to the same month in the previous five years, volumes were down 5.3%, marking an annual decline of 11.6%.

Among the several types of rooms in HDB flats, 36.9% were four-room, 32.8% were three-room, 24.6% were five-room, and 5.7% were executive.