Condo & HDB rents continue surge in May but volumes down year on year

by Albert02

Condo & HDB rents continue surge in May but volumes down year on year

Condo & HDB rents continue surge in May but volumes down year on year. RENTAL PRICES AND Volumes FOR CONDO AND HDB UNITS INCREASED MONTH ON MONTH IN MAY.

Huttons Mark Yip of Asia attributes the strong gains in May to a “much stronger-than-expected” return of foreign employment, which increased rental demand for both private condos and HDB flats.

The CEO believes that the tight rental market will not ease anytime soon, and that rents will rise in the coming months.

“Some expatriates are requesting that their employers increase their housing allowance to offset the relentless rise in rents,” Yip explained. “This will increase the costs of doing business in Singapore and may reduce the Republic’s attractiveness in the long run.”

As the new school year begins, he anticipates an increase in demand for housing from international students.

According to the most recent flash figures released by SRX Property and 99.co on Wednesday (Jun 15), condo rental prices increased for the 17th consecutive month, increasing 2.8 percent from April 2022 and 18.1 percent year on year.

By region, the outside central region (OCR) experienced the highest month-on-month percentage increase of 3.3%, followed by the rest of the central region (RCR) and core central region (CCR) at 2.8% and 2.2%, respectively.

Rents in the OCR, RCR, and CCR increased by 19.7 percent, 18.6 percent, and 15.4 percent, respectively, year on year.

While overall condo rental volumes increased 11.7 percent to 4,185 units from 3,748 units rented the previous month, this was still 23.7 percent lower than the previous year. They were also 13.2 percent lower than the 5-year average for the month of May.

The OCR accounts for 41.1 percent of total volumes, the RCR for 31.9 percent, and the CCR for 27 percent.

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, predicts that as prices rise and inflationary pressures mount, more private rental tenants will opt for smaller units or those located outside of the city center.

She anticipates continued strong demand in the suburbs, where private homes typically command lower rents. According to her, rents in the OCR may also rise in the coming months.

Rents in the HDB segment increased by 2.4 percent from April 2022 and 16.2 percent year on year in May, with increases in both mature and non-mature estates and across all room types.

May HDB rental prices in mature estates increased by 1.8% from the previous month and 14.4% year on year, while rentals in non-mature estates increased by 3.1% from April and 18.1% from May 2021.

Five-room HDB flats saw the highest on-month rental increase of 3.3 percent, which SRX and 99.co attributed to tenants’ preference for larger spaces.

Rents for three-room, four-room, and executive flats increased by 2.1 percent, 1.9 percent, and 1.6 percent, respectively.

Annual rent increases were 15.4 percent, 15.6 percent, 18 percent, and 11.4 percent for 3-room, 4-room, 5-room, and executive flats, respectively.

HDB rental volumes increased 8.4 percent from 1,492 units rented in April 2022 to an estimated 1,617 units rented in May 2022. This was, however, 17.3 percent less than the previous year and 12.4 percent less than the 5-year average volume for May.

Three-room, four-room, five-room, and executive flats accounted for 35.3 percent, 37.8 percent, 22 percent, and 4.9 percent, respectively, of total HDB rental volumes in May

Click the image to read the full details of report.
Source:
https://www.businesstimes.com.sg/real-estate/condo-hdb-rents-continue-surge-in-may-but-volumes-down-year-on-year-srx-99co

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