Rental prices for both non-landed private units and Housing and Development Board (HDB) flats fell in the month of November, according to flash estimates released by the Singapore Real Estate Exchange (SRX).
In a report issued on Wednesday (Dec 10), rentals for private homes dipped 0.8 per cent month-on-month in November – representing the 10th consecutive month of falling prices. Rents in all three sectors – Core Central Region, Rest of Central Region and Outside of Central – saw a drop of 0.3 per cent, 0.7 per cent and 1.2 per cent, respectively.
Rental volume for private units also fell – down 11 per cent to 2,892 units in November, compared to the 3,251 units rented in October.
HDB RENTAL PRICES STAY STABLE
Rent prices for HDB flats dipped marginally, posting a month-on-month decline of 0.1 per cent in November – the third straight month of decline. Rentals for three-room and five-room fell by 0.2 per cent and 1.0 per cent, respectively.
Rents for four-room flats, however, stayed the same while rents for executive flats rose 3.5 per cent, according to SRX.
FALL IN RENT IS EXPECTED: EXPERT
Real estate firm HSR says the fall in public and private housing rents is “expected” partly due to an oversupply of rental units, as home owners hold back on selling their properties due to the low offering prices.
“Many of those who are looking to sell their properties realise that they are unable to get the price they want. They may then think, why not rent it out?” said Mr Donald Yeo, HSR International Realtors’ Head of Marketing and Training.
However, HSR also says owners of bigger HDB flats may find some respite in the softening rental market.
“The five-room or the executive maisonettes will be more attractive because, due to the adjustment in prices, tenants will feel that these houses are now much more value for money,” said Mr Yeo. “When tenants choose a place, they will compare between the private and HDB houses, and they will see that the sizes of the HDB homes are very luxurious. That is why I feel that prices of the bigger HDB flats will be sustained.”
Source : Channel NewsAsia – 10 Dec 2014