Rentals for HDB and condos in September decrease
SRX’s and 99.co’s Friday flash estimates show that HDB apartment rents have increased again. However, condo rental rates continue to decrease.
Rents for HDB and Condominiums flats and HDB condos decreased in September.
According to data, the volume of condominium leasing fell 15.2 percentage from August’s 6,736 units to 5,713 in September. Volumes dropped 12.7% compared to the previous year and fell below the September average.
Mark Yip said, “With little incremental need to absorb new condo supply in September of 2023, landlords are under increased pressure to retain their tenants.”
OrangeTee’s Sun Ms. did not find the correction surprising, as rents had risen “too rapidly and at too high a rate” since 2022. Renters were forced to leave the area in search for more affordable accommodations.
CCR rents are up by 0.5 percent. RCR and OCR rentals both dropped 0.2 and 1.3 respectively. CCR Rents increased 11.1 percent, RCR Rents 14.9% and OCR Rents 15.7% from year to year.
According to SRX and a 99.co report, 37.4% of the flats leased had four rooms. This was followed by a three-room apartment with 32.8% and subsequently ten-rooms apartments.
HDB apartment rents grew by 0.4% on the month. This continued a downward trend and was up 18.2% year over year. Rentals in both matured and non-matured estates increased 0.3% per month. On a yearly basis, mature estate rents rose by 17.2% and non-mature rental rents gained 19%.
OrangeTee & Tie Senior Vice-President of Research and Analytics, Christine Sun, stated that foreign workers and students looking for low rent are driving the market.
Less homes were available to lease as fewer home owners upgraded from private housing due to cooling measures. However, locals moving to new housing could help mitigate this drop in the supply.
Month-on month, rentals of all kinds increased. Both three-room and 4-room apartments saw a 0.1-percent increase in rents, while five-room rentals rose by 2.1%. The rent for executive flats fell by 0.8%.
Rentals have increased in all rooms year over year. Larger flats saw the biggest increases, including executive flats with 19.5% and 5-room flats (21.6%). Following closely behind were four-room rents, which grew by 18.2%. Three-room rents climbed by 15,7%.
The rents of condos have continued to decline for another full month. Over the past year, rents have increased 13.9%.
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Over 35.7% of volume comes from Outside Central Region, followed by the Rest of Central Region (33.1%) and the Core Central Region (31.1%).
HDB rents fell by 7.8 % from 2.998 to 2,763 rentals in September. In September, the volume was up 20 per cent compared to the same month last year and five per cent above the average of the past five years.
ERA Singapore’s chief executive officer Eugene Lim says that demand for HDB apartments is softer than expected, mainly thanks to the flurry of condos being completed over the recent months.