Rental prices of private apartments and housing board flats increased by a considerable level in the previous month. Property analysts state that the trend is expected to continue for a longer time ahead because completed housing projects are not enough to serve market demands.
HDB rents in the month of July climbed at a low pace of 1.5%; however, it was only 2.3% in the month of June. Presently, rents for both non-mature and mature real estate markets are rising. Condominium rents in the area rose by 1.7% in the previous month, which is 2.1% higher when compared to the previous month. This scenario reports straight growth of 19th month for condo rents with 25th concerning HDB rents, which appears longest ever streak for both these markets in Singapore.
If we talk about the previously recorded growth streaks in SRX and 99. co rental indexes, it shows a rise for 14 months for condo rents ranging from July 2006 to August month of the year 2007. Whereas it reported 19 months of growth for HDB rents ranging from February 2010 to August 2011. The experts in the real estate property market reveal that rents may rise further in the coming year due to strong demand with limited rental stock.
Nicholas Mak, the head of the research and consultancy department in ERA Realty recently stated that several couples are renting HDB flats due to the delay in the development of Build to Order flats. However, the BTO flat completion is also delayed due to limited supply chain services. Other than this, the recent relaxation in travel restrictions after covid-19 pandemic also brought a higher number of foreigners to Singapore, either for education or work; this scenario is automatically contributing to higher demands. Tenants are even ready to accept higher rental values these days. This may be due to the lack of housing stock in the Singapore market, especially in the scenario when demands are rising high.
The permanent residents and foreign investors that have recently returned from other countries are ready to pay the higher rental cost if they get some reliable housing option. Condo rents are rising all over the Singapore central real estate market along with suburbs and city fringes as well. Note that apartments in the suburban areas are even experiencing a rise of 2.2%. The suburbs are expected to cover almost 38.1% of the total leased volumes in the area.
Singapore condo rents have also increased by 23.5% within one year; however, rents for suburbs increased by 26.3%. On the other side, HDB rents presented an estimated hike of 19.1% when compared to July month of the previous year. Moreover, the rental price for five-room apartments increased by 20.9%.
In this scenario, the rental volume for condos reached 5.3% in comparison to 4,809 units in the previous month and only 4568 units in June. A higher number of HDB flats were leased recently and shows a rise of 11.1% with the 1762 units, this trend reverses the drop from the previous month.
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