After the recent cooling measures applied in the Singapore housing market, the rental prices for private apartments & housing board flats have grown fast and the scenario indicates strong pressure on the rental market during the coming months. Studies reveal that HDB rental properties have climbed by almost 3.2% during the month of September which is comparatively higher than 2.4% rise reported in August. This report is presented with reference to both non-mature as well as mature estates in the Singapore housing area.
The rents for the Singapore condos in the previous month went up by 3.2% whereas they reported a 3.3% rise during September. However, if we look at the prices for city fringe, they went up by 3.9% in the last month.
This growth is continuous for the 27th straight month for HDB rental properties and the 21st for condo rents. The experts in the Singapore property market reveal that the rising demand for rental houses has increased the rents which resulted in the landlord’s market. As there are few options for rental housing available, several tenants have decided to pay higher asking amounts. Even several less accessible homes and older properties in the area have experienced a considerable rise in rental prices. When compared to September month of the previous year, the condo rentals increased to 31.8% in the city fringe with 30.9% in the other areas.
HDB rents have become 24.7% higher in comparison to September month of the previous year; however, the five-room flats report a jump of 27.9%. At the same time, the rental volume for condos has also picked up the pace with a rise of 9.8% achieving the estimated count of 4760 units in the previous month. The count of condos leased increased by 1.9% on annual basis and the count is now 5.6% higher in comparison to the five-year average of September month. A large number of HDB flats were leased during the previous month as well while showing a growth of 0.3% in comparison to August.
For September month, the HDB market rental volume increased by 5.1% on annual basis and it shows a 0.9% rise in comparison to the five years average. The experts in the Singapore property market believe that as companies have started hiring more foreign talent, it has created a tight local market for laborers with a reduced unemployment rate. As the number of interested buyers is increasing, the owners may also like to avail more benefits from their rental properties.
Furthermore, the rising interest rates have been also passed by the landlords to the tenants. The estimates reveal that the rents may rise by almost 10% during the fourth quarter of the year 2022. Other than this, the increased stamp duty for additional buyers may be another matter of concern for the purchase of new homes which has influenced most people to think about rental properties.
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