Rental prices, volume stay soft in Nov: SRX

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

Rental prices, volume stay soft in Nov: SRX

Thursday, December 15, 2016

by Lee Meixian

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@LeeMeixianBT


THE residential leasing market remained soft last month, with rents of both private homes and HDB flats continuing their downward drift.

Private rents slipped 0.8 per cent in November from a month ago, according to flash estimates by SRX Property. Rents of HDB flats fell 0.9 per cent during the same period.

The rental drag in the private segment came from all regions, with the prime or Core Central Region (CCR) down 0.7 per cent; and the city fringe or Rest of Central Region (RCR) and the suburban or Outside Central Region both falling 0.9 per cent.

HDB three-room, four-room and five-room flats saw rental declines of 1.6 per cent, 0.5 per cent and 1.1 per cent respectively, while rents for HDB executive flats inched up 0.8 per cent during the month.

But the decline in rents - which has seen private home rents decline 18.9 per cent from its peak in January 2013 and HDB flat rents down 12.2 per cent compared to its peak in August 2013 - did not spur more rental transactions in November, based on SRX Property estimates.

The estimated rental volume of 3,811 private units in November was 0.5 per cent lower than in October, though it is 20.8 per cent more than in November 2015.

SRX Property's estimate for HDB rental volume at 1,747 HDB flats in November was also 1.3 per cent lower than in October and 7.3 per cent lower compared to November 2015.

Ong Kah Seng, director of R'ST Research, said that the fact that rental prices and volume fell simultaneously in November was "well within expectations" as leasing conditions remain soft amid substantial new completions. "The year-end usually sees reduced expatriate inflow," he said, adding that some expats may have returned to their home countries after their employment contracts were not extended.

"Also, although private residential rentals have fallen to more affordable levels for tenants, it is still generally unable to result in very significant leasing interest as tenants remain cost-sensitive in their choices."

Flash reports on rentals by SRX Property typically capture around 80 per cent of the month's transactions on average at the time of their publication.

Volume estimates for transactions not yet captured are based on the estated agencies' historical submission pattern and timeline, taking into account seasonal periods during the year.

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http://www.straitstimes.com/business...db-fall-in-nov

Rents for private flats, HDB fall in Nov

Dec 15, 2016

Ann Williams


Rent for non-landed private homes and HDB flats fell last month from October, according to SRX Property yesterday.

Non-landed private home rents fell 0.8 per cent, while those for HDB flats declined 0.9 per cent.

Rents for condominiums and private apartments recorded their fifth straight monthly fall in November.

Rents for these non-landed private homes fell across all locations, down 0.7 per cent in the prime districts and 0.9 per cent in the city fringes and outlying districts.

November rents were down 4.5 per cent from the same month last year and 18.9 per cent off their peak in January 2013, SRX Property said. The number of condo and apartment leasings also dropped, dipping 0.5 per cent from 3,830 in October to 3,811 last month.

However, rental volume last month was 20.8 per cent higher than the 3,156 units leased in November last year.

The HDB rental market also recorded fewer leasings, with an estimated 1,747 flats rented last month, a 1.3 per cent decrease from October.

Year on year, rental volume last month decreased by 7.3 per cent from November last year.

Rents for HDB executive flats rose 0.8 per cent from October, but the smaller three-room, four-room and five-room units dropped by 1.6 per cent, 0.5 per cent and 1.1 per cent respectively. Mature estate rents decreased by 1.2 per cent from October to November, while those in non-mature estates declined 0.7 per cent.

HDB rents were down 4.6 per cent in November from the same month last year and 12.2 per cent off their peak in August 2013.

Rent for flats in mature estates slipped 4.5 per cent in November from the same month last year, while those in non-mature estates dropped 4.7 per cent from a year ago.

Ann Williams