Residential leases down for September

While Singapore’s residential leasing market cooled in September, leasing volume and median rents for Q3 still peaked at record highs, according to data from the Urban Redevelopment Authority (URA) and Savills Research & Consultancy.

Last quarter, leasing volume hit a new historical high of 14,029 leases, surpassing the previous record of 13,028 in Q3 2011. With 37,668 leases already transacted in the first nine months of this year, total leasing volume for 2012 is expected to surpass last year’s record of 45,062.

At the same time, median rents of both landed and non-landed homes reached record levels since 2000. Landed homes recorded S$2.79 psf per month, while non-landed properties reached S$3.67 psf per month.

In September, median rents for non-landed properties reached S$3.74 psf per month, exceeding the previous month’s figure of S$3.67 psf per month. However, rents for landed homes declined month-on-month by seven percent to S$2.66 psf per month.

The overall transaction value recorded in Q3 reached a new high of S$72.9 million, an increase of nine percent from the same period last year.

The significant rise in the first three quarters may seem puzzling, given that Employment Pass (EP) holders fell by some 700 between December 2011 and June this year, based on data from the Ministry of Manpower.

One explanation for this is that the leasing data are gross figures, comprising both new leases and renewals. They also cover leases that were terminated before their due date and were subsequently re-let, Savills noted.

Moving forward, leasing transactions are expected to hold steady or even rise for the remainder of 2012 and perhaps until mid-2013, as the number of people granted EPs in 2010 and 2011 were high.

Source : PropertyGuru – 31 Oct 2012

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