Prime residential rentals in Singapore increase in Q3

Prime residential rentals in Singapore have been boosted by new supply in the third quarter.

According to preliminary estimates from Jones Lang LaSalle, average prime non-landed residential rental experienced a slight uplift of 1.1 per cent quarter on quarter.

It rose to $4.65 per square foot per month in the third quarter as higher rentals commanded by the new completions benefited the rentals in the existing projects.

From the start of this year to August, approximately 1,520 units have been completed in districts 9, 10 and 11.

These include notable projects such as Skypark and Ardmore II where leases are transacting above market average.

But average rentals commanded in alternative locations felt the impact of the new supply.

Average rental in the popular Central districts maintained while that in the traditional East Coast districts slipped 4.3 per cent quarter on quarter to $3.30 per square foot per month.

While rentals may be boosted when good quality developments are completed, market average for prime residential properties is expected to maintain or rise marginally at best, in view of the substantial upcoming supply in the next few years.

Source : Channel NewsAsia – 23 Sep 2010

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