The survey reports that have been recently submitted show that the rents for the private condos on non-landed areas have gone down by a considerable margin and the decrease has now been recording for consecutive two months. Although Singapore condos have seen a certain fall in the rates, the rents of the Housing Board (HDB) flats have gone up considerably. Like the last month of May, in June too, the rent rates of the condos dropped by a total of 0.2% taking into consideration all the units that are both in the nucleus and border of the city.
If we are to divide the whole city into three succeeding circles, the private rents in the innermost and outermost ring that form the core and the circumambient regions to the central part, saw a decrease in the rents by 0.5% and 1.1% respectively, while the intermediate ring that forms the integral portion of the city, saw a hike by 0.9% of the rents.
The rates appear more impressive if the statistics of the rents are calculated on a yearly basis. For instance, let’s compare the last year (2018) to the current year (2019); there were nearly 4,704 private condos and flats that were held out on lease, and the previous year saw a rise in 4.2% of the rates, whereas when the similar period of June-May (2018-19) is taken into consideration, the yearly increment adds up to 6.4%, thus creating a difference of 1.9% from the last year, as quoted by SRX Property. The rates of every portion of the city were consequentially increased: 2.7% in the core central region, 2.1% in the remaining part of the city’s center and 1% in the outskirts of the center altogether. The rents were therefore running at 17.5% lesser value when calculated to the peak rise that it saw in the month of January, 2013.
Now contrasting the condominium and HDB flats, the latter has shown improvement in its demand. On one hand, although around 4,622 private condos were leased out in the second quarter of the year 2019, it only saw an increase of 0.9% from the final calculation at the end of the first quarter of the year. On the other hand, in case of the HDB flats, less than half of them were rented in comparison to the condos, still the rents saw a rise of 1.2% in the month of June last year, even though there was a dip of 3.1% in preceding May.
Keeping aside the fall in demand, around 4,622 units of condos were put out on lease in the second quarter of the year and increased by 0.9%.
According to the analysts and heads of research and consultancy of Ms Christine Sun, OrangeTee and Tie, the fall of rents is quite what they expected because of the period of May and June is primarily the spectrum for contract renewals for the third quarter of the year. Also, Ms Sun was of the opinion that another accompanying factor that led to the fall could be the ongoing social unrest in Hong Kong that has led a lot of investors to form a discrepancy regarding the area’s financial stability.
However, the HDB rents after their increase by 0.1% in May, observed yet another rise in the month of June by 0.4%. In the last year, although there was a fall in rents from 3.1% of May, but wre again up by 1.2% in June from their 1,878 flats.
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