Singapore condo rents up in November, HDB rents slip: SRX

Both figures still higher than a year ago; condo rental volumes shrink again, but year-end is lull period

THU, DEC 12, 2019

RACHEL MUI


RENTS for non-landed private homes in Singapore rose in November from the previous month, while those for HDB flats slipped, though both were higher from a year ago.

Overall condo rents increased 1.2 per cent from October, and are up by 4.6 per cent year on year. However, they are still 16 per cent below their peak in January 2013.

Rents in the suburbs, or outside central region (OCR), climbed the most, with a 1.6 per cent hike from October to November. Rents in the core central region (CCR) rose 1.2 per cent. Rents in the rest of the central region (RCR) gained 0.7 per cent.

Year on year, condo rents were up in all regions last month: CCR by 5.8 per cent, RCR by 3.7 per cent, and in the OCR by 4.4 per cent.

The SRX flash data released on Wednesday also showed that some 3,980 condo units were leased in November, down 7.6 per cent from 4,307 units in October, and down 3.1 per cent from a year ago.

Condo rental volume shrank for the fourth consecutive month this year, though volumes are still 7.5 per cent higher than the five-year average volume for the month of November.

ERA Realty head of research and consultancy Nicholas Mak said it is unsurprising that private housing rental volume slipped last month, as the last two months of the year are usually the lull period in the residential rental market, with expatriate tenants returning to their home countries.

Nonetheless, he noted that the rise in the private rental index points to the "underlying robustness in the rental market".

In the public housing market, HDB rents inched 0.1 per cent lower last month from October, and are still down 14.5 per cent from their peak in August 2013.

Mr Mak noted that the 0.1 per cent drop in the HDB rental index is a minor change, and could be due to the year-end lull period.

For the month of November, rents for three-room flats rose 0.4 per cent, while rents for five-room and executive flats climbed 0.1 per cent and 0.7 per cent respectively. Rents for four-room flats fell 0.5 per cent.

In non-mature estates, rents declined 0.4 per cent, while rents in mature estates rose 0.1 per cent.

Year on year, HDB rents were up 1.6 per cent, with all room types posting increases, led by a 3.4 per cent growth in executive rents.

There were 1,842 HDB flats rented in November, a 0.1 per cent increase from 1,840 units in October.

Looking ahead, ERA's Mr Mak said rental rates could face upward pressure next year, as the new supply of completed private residential units will dip to only 5,122 units. "This is a 70 per cent drop from the five-year annual average supply of 17,055 units per year in the past five years," he said.