This is not the kind of news that should worry landlord anytime soon, as rents are still requested by many people in Singapore, especially in the non-core central region. In fact, in this particular area, rents even recorded a slight increase of 0.3%, in comparison with the downward trend that marks this sector of the property market. Apparently, according to the estimates of landlords, the rather small but positive increase is not doing much for them, as they will still take smaller percentages from their rents. In other words, the month of March will bring them rents with 18.9% lower than what they got in January, the same year.
SRX Property is the one that took a closer look at this situation, coming up with estimates that show a decline when it comes to private Singapore Condos and HDB flats. It seems that the beginning of the spring was not that great for the rental market, as March brought in the first decline after months in which landlords gained well, in spite of the fact that the number of rented units went up. How significant is the decrease? For starters, the private homes that are non-landed suffered a drop in rent of 0.2% in March, compared with February. The core central region brought these numbers, as in this area there were rents that dropped even with 0.4%, affecting the stats of the entire area. Of course, areas in outside the central region and suburbia brought their contribution to this descending index, as rents here were 0.5% lower in March.
As mentioned earlier, not every landlord in Singapore has a reason to be worried. Those that have properties for rent in the non-core central region, in areas like Tanjong Rhu, enjoyed a rise of 0.3% in rents. Also, if we take a look at how rents looked like in 2017, their overall value increased by 0.2%, even if their monthly evolutions show decreases. It is also important to mention that, in March, a significantly higher number of properties were rented than in February. Thus, there was a rise of 28.3% at this chapter, although the numbers are with 4.4% lower than the same period of the last year.
The situation affected the flats offered by the HDB as well, as they recorded the most significant decrease this March, of 0.8%, in comparison with February. Taking the numbers from March 2017, the rents for these flats dropped with 2.4% this year, while there is a decrease of 15.6% since 2013, August, when a peak was reached. Yet again, the drop is recorded in spite of the fact that HDB managed to rent more units in March, with 45.3% more than in February. So, if just 1,401 units were rented in the second month of the year, March brought in a number of 2,036 apartments that were rented. How are the specialists explaining this increase? It appears that the decrease is a periodic one, following the celebration of the Chinese New Year, when real estate transactions are disregarded. So, now that the holidays are over, things are starting to move once again. Also, concerning the remaining months of this year, the rents practiced by the HDB are forecasted to reach a steady value very soon.
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