In March, Singapore condo and HDB unit rents rose again
Condominium and Housing Board flats like Dunman Grand Balance Unit Chart rents have slowed their rate of increase in January.
Flash numbers from real estate websites 99.co and SRX published on Tuesday showed that condo rentals increased by 1.4% from December, registering the lowest gain in the last 11 months, while Dunman Grand Showflat rents increased by a more modest 0.6%.
In January, there were reportedly 6,285 condos rented, a decrease of 0.9% from December’s total of 6,345 condos.
Overall, volume was 15.3 percent lower than it was during the same time a year earlier.
The condo rental market’s price gain was driven by a 1.8% monthly increase in the CCR, according to the data.
There was a 1.7 percent increase in RCR rents and a 0.8 percent increase in OCR rents compared to the previous year.
Condominium rentals increased by 31% in CCR, 34% in RCR, and 33% in OCR compared to the same time last year.
From January 2022 to January 2023, rents rose by 33.2% overall.
Fewer transactions were concluded in January due to the Chinese New Year vacation, according to property experts, which slowed the price rise for both condos and HDB apartments.
According to Nicholas Mak, director of research and consultation at ERA Realty, tenants’ reluctance is another potential explanation.
The rental index for both public HDBs and private condos has been rising rapidly since July 2020. He lamented, “Rents had risen to historic highs, driving a wedge between landlords and their tenants.”
He also noted that the rapid pace of rental rate increases experienced in the last year—when the non-landed housing index increased by almost 30 percent from the previous year—could not be maintained.
Mr. Mak speculated that some renters could be relocating to less expensive areas in order to control rising prices.
The decline in lease demand might be attributable, in part, to the return of young adults to their parents’ houses, a trend that began when telecommuting became commonplace.
Probably because rents have already shot up fairly dramatically over the last year,” Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, said.
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