Recent reports reveal that the rental volumes for condos as well as Housing Board (HDB) flats rebounded in the last month after a great decline in the previous quarter. However, rents hit the peak highs in the month of March while surpassing the last peak reported in August 2013 by almost 1%. On the other side, the rental price for condos went off the peak by 0.8% in comparison to stats observed from January 2013.
The experts in the real estate industry consider this a safe management measure that can facilitate viewings. The main contributing factors to this rise are the return of expatriates and foreign workers after relaxation in lockdown measures and the reopening of borders.
The rental volume for Singapore condos climbed by almost 21.2%, with an estimate of 4683 units in the previous month; however, it was 3863 units in February. A huge number of HDB flats in Singapore were leased last month. The range was high by 31.3% to the estimated 1767 units in comparison to 1346 units reported in the previous month. Observations reveal that condo rents increased by 2.9% at a quicker pace in comparison to the 1.4% in the February month. The HDB rents further increased by 1.4% as compared to the 1.7% estimate of the previous month. It is reported to be the 15th straight month for condo rental growth and the 21st for rental of HDB flats.
The vice present of research and analytics at Orange Tee & Tie, Ms. Christine Sun, recently said that the company had noticed a considerable rise in inquiries as well as units leased to workers from Malaysia after the recent relaxation in Covid-19 restriction. Furthermore, Mark Yip, Chief Executive of Huttons Asia, stated that the short-term rise in the demands from tenants that are experiencing delays in completion of their own homes due to a lack of workers is the major reason behind increased condo rental volume in the month of March. He also added that the rents for short-term stays are usually higher in comparison to the typical lease terms, and this scenario further contributed to a rise of 2.9% in the rental price, which is considerably higher than the stats observed in the previous month.
The demands for rental condos in the area have increased significantly in central Singapore, suburbs, and city fringes as well. The suburbs led to 39.1% of the overall volume. Note that rents for the HDB flats in Singapore increased for all types of flats, including non-mature and mature stats. When compared to the market condition reported in the month of March in the previous year, the HDB rents are approximately 13.5% higher this year.
The lack of supply for recently completed homes further contributed to the rise in rental rates in most real estate markets. This exponential rise in the rental rates along with lower volume points to a fall in residential property completion as there is a huge supply chain disruption in the industry.
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