Rentals of luxury apartments fall 0.8%

Monthly rentals of luxury apartments fell 0.8 percent in Q2 this year due to tighter immigration rules, noted Colliers International Research.

The consultancy stated that stricter immigration controls affected spill-over leasing demand from foreigners who cancelled or postponed their buying decisions due to the additional buyer’s stamp duty (ABSD).

“Coupled with the seasonal summer break lull, the leasing market was relatively quiet in the three months from April to June,” Colliers said.

“Although enquiries picked up towards the tail end of Q2 2012, tenants with tightened housing budgets kept a lookout for more affordable housing alternatives in the high-end market segment while expatriate families with comparatively bigger housing budgets diverted their attention to landed properties, in search of a relatively more private and spacious environment.”

Consequently, average monthly gross rents of luxury/super-luxury apartments dropped 0.8 percent quarter-on-quarter to S$5.64 psf in Q2.

Source : PropertyGuru – 26 Jul 2012

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