http://www.straitstimes.com/archive/...-edge-20140909

Condo rents fall again, but prices of units sold edge up

Property curbs continue to dampen market as rents dip for a 7th month

Published on Sep 9, 2014 1:37 AM

By Cheryl Ong


RENTALS for condominiums slipped further last month, although there was some respite for those trying to sell their units.

Fresh estimates from the Singapore Real Estate Exchange (SRX) yesterday underscored the downbeat sentiments in the property market, which has been mired in gloom after cooling measures and stricter financing requirements kicked in.

Landlords saw rents for private apartments slide for the seventh straight month, easing 0.6 per cent last month. This was a low not seen since May 2011.

"With more projects being completed, there is an increase in competition for tenants," said Mr Eugene Lim, key executive officer of ERA Realty. "Landlords have to be realistic about rents to secure tenants quickly, and very often, it would mean lowering rents to attract or keep good-quality tenants."

There were 3,539 condo units rented out last month, slightly up from 3,416 in July, said SRX. A record number of units that will be completed in the next few years means tenants will be spoilt for choice, experts said, and as a result, investors are in no hurry to buy up more condo units.

"These are tough times, the supply of homes for rent is more than demand," said property agent Peter Wan, 49.

A client, who owns a two-bedder at The Lakefront Residences in Lakeside Drive near Jurong, found a tenant only after he dropped asking rents from $3,800 a month to "below $3,000", said Mr Wan. There were 762 rental listings on online portal PropertyGuru for the 629-unit project.

Meanwhile, prices of condo units that changed hands last month crept up by just 0.4 per cent, picking up from a 1.3 per cent slip recorded in July.

Luxury home prices helped underpin last month's gains, as they registered the biggest increase of 4.8 per cent. But this follows months of declining prices in the luxury market.

"Buyers are finding high-end properties more affordable than before, although they are still very much concerned about weak leasing interest for high-end homes," said Mr Ong Kah Seng, director of R'ST Research.

In contrast, prices of resale units in the city-fringe areas rose by a smaller 1.5 per cent, while suburban condo prices fell by 1.1 per cent. A total of 418 resale condo units were bought last month, similar to July's 417 units.

The lacklustre market seems to be giving homebuyers the upper hand, as the overall median transaction over X-value (TOX) has stayed in negative territory since last October.

TOX, an indicator of how much buyers pay over past transacted prices of comparable units, was $10,000 lower than the market value last month. This was an improvement from the $20,000 buyers were underpaying in July.

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