Residential property rents climb in October; condo volumes down
Residential property rents climb in October; condo volumes down. Condominium and Housing and Development Board (HDB) rental rates rose in October despite a major drop in condo rental volumes, according to SRX and 99.co flash estimates released Wednesday (Nov 9).
Rents in the condo market increased 2.7% from September to the 22nd consecutive month, led by a 3.2% month-on-month increase in the Rest of Central Region (RCR). Rentals in the Core Central Region (CCR) and Outside Central Region (OCR) increased by 2.1% and 2.6%, respectively, month on month. Overall rental costs for condominiums increased by 32.7 percent year on year, with rents in the CCR, RCR, and OCR increasing by 31.1 percent, 34.2 percent, and 32.6 percent, respectively.
Condo rental numbers, on the other hand, declined 8.7 percent from September, with an expected 4,355 units rented in October compared to 4,771 units rented earlier. This is a 13.9% year-on-year volume decrease. According to Pow Ying Khuan, head of research at 99 Group, one possible explanation for the reduced volumes is a shortage of supply in the market. “Due to building delays caused by the pandemic, fewer new homes have been finished and are available for rent,” he noted. By area, the OCR accounted for 39% of October’s volumes, while the RCR accounted for 35.33% and the CCR accounted for 25.77%. Meanwhile, HDB rents increased by 1.8% in October compared to the previous month.
Although three-room HDB rates declined by 1% from the previous month, executive and four-room rents more than compensated, jumping by 6.1% and 4.4%, respectively. Rental prices for five-room apartments increased by 0.3%. Overall, HDB rentals increased by 26.6 percent year on year, with rates in mature estates growing by 25.7 percent and rents in non-mature estates increasing by 27.4 percent, respectively. Three-room rentals increased by 22.5 percent year on year, four-roomers by 28.2 percent, five-roomers by 27.6 percent, and executive rents by 30.6 percent.
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