Savills: Private residential rents at highest levels in 24 years

November 11, 2022

Rents of landed and non-landed residential properties recorded quarterly increases of 10.9% and 8.3% in 3Q2022. According to Savills Singapore, the rental index of these property types hit record levels in 24 years since the start of the URA time series in 4Q1998.

Notably, Savills highlights that the top two projects with the highest non-landed residential housing are newly completed projects in the Rest of Central Region (RCR). They are Stirling Residences and Park Colonial.

Using EdgeProp’s research tools, Stirling Residences has an average rent of $7.1 psf per month (pm), while Park Colonial has an average rent of $6.5 psf pm.

Savills notes that the monthly rental achieved at those two projects is comparable to those at prominent developments in the Core Central Region such as The Sail @ Marina Bay ($6.24) and Marina One Residences ($6.64).

Overall, residential leasing volume in 3Q2022 rose 20.5% q-o-q to a total of 25,382 transactions. This is the largest quarterly increase in leasing volume since 3Q2020 when rental transactions rose 34.6% q-o-q.

The interest rate hikes that is ongoing led to landlords increasing rents as their mortgage repayments are expected to increase concurrently, says Savills
The number of landed homes being leased out in 3Q2022 increased to 1,812 transactions, up from 1,228 transactions in 2Q2022. Meanwhile in the non-landed segment, Savills notes that were was a "sharp q-o-q increase" of 18.8% to 23,570 transactions last quarter.

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