SINGAPORE - The rental market for private non-landed property picked up in November while it slowed for HDB properties, going by flash data from real estate portal SRX on Wednesday (Dec 12). Rents for condominiums and private apartments in November increased by 0.6% from the previous month. The monthly decline in rents for October was raised to 0.9% from 0.7% estimated earlier. They were unchanged in August, from an earlier SRX estimate of a 0.1% dip. Year on year, private rents are up by 0.3% from November 2017. However, compared to their record high in January 2013, they are down by 19.6%
Going by location, private rents in the prime or core central region (CCR) increased by 1.8% month on month in November while rents in the city fringes or rest of central region (RCR) grew by 0.6%. However, rents in the suburbs or outside central region (OCR) declined by 0.3%. Year on year, RCR and OCR rents have risen 1.2% and 0.8% respectively, but CCR rents have dropped by 1.5%. SRX said the number of condo and private apartments leased fell by 11.2% in November to an estimated 3,791 units from 4,271 in October. Year on year, though rental volume in November was 11.8% lower than the 4,297 units signed for in November 2017. Meanwhile, Housing Board flat rents in November dipped 0.5% from October.
Year on year, HDB rents are down by 1.3% from November 2017, and off by 15.8% from their last peak in August 2013. SRX revised up the monthly change in October HDB rents to a 0.4% increase from a 0.3 % rise. Fewer HDB flats were also rented out in November with leasings down 10.1% to an estimated 1,706 units from 1,897 the month before, SRX said. Year on year, rental volume for HDB flats in November was 13.7% lower than the 1,976 rented in November 2017. Rents for five-room flats inched up 0.3% month on month. Meanwhile, rents for three-room flats, four-room flats, and executive flats decreased by 0.5%, 0.7% and 2.3% respectively. Meanwhile, rents in mature estates decreased by 0.5% month on month and those in non-mature estates fell 0.6%. Year on year, rents of mature estates in September slipped 1.2% and rents of non-mature estates fell 1.4%.
Commenting on November's figures, OrangeTee & Tie's head of research and consultancy Christine Sun said: "We have observed more tenants opting for shorter lease periods this year thus generating more leasing transactions in the market. We have also observed more tenants working in the fintech industry lately."
With plans in place for the fintech space to develop further, Ms Sun said more expatriates with specialised skills in the development of fintech services could move to Singapore for work, "which may lend support to the rental market in the coming months".
"Private homes near some of the upcoming digital tech hubs like Buona Vista, Punggol (upcoming Punggol digital district) and downtown core may see better demand.""Adapted from The Straits Times, 12 Dec 2018."