Residential property rents climb in October; condo volumes down
Residential property rents climb in October; condo volumes down. According to SRX and 99.co flash estimates released Wednesday, condominium and Housing and Development Board (HDB) rental rates rose in October despite a significant drop in condo rental volumes.
Condo rents grew 2.7% from September to the 22nd consecutive month, topped by a 3.2% increase in the Rest of Central Region (RCR). Monthly rental rates in the Core Central Region (CCR) and Outside Central Region (OCR) increased by 2.1% and 2.6%, respectively. Overall condominium rental costs rose 32.7 percent year on year, with rents in the CCR, RCR, and OCR rising 31.1 percent, 34.2 percent, and 32.6 percent, respectively.
Condo rental figures, on the other hand, fell 8.7 percent from September, with 4,355 units scheduled to be rented in October, compared to 4,771 units rented in September. This is a 13.9% decline in volume year over year. One possible explanation for the lower volumes, according to Pow Ying Khuan, head of research at 99 Group, is a market supply shortage. “Due to the pandemic’s construction delays, fewer new homes have been completed and are available for rent,” he noted. The OCR accounted for 39% of total volume in October, while the RCR accounted for 35.33% and the CCR accounted for 25.77%. Meanwhile, HDB rents rose 1.8% in October over the previous month.
Although three-room HDB rates fell 1% from the previous month, executive and four-room rents increased by 6.1% and 4.4%, respectively. Five-bedroom apartment rents increased by 0.3%. Overall, HDB rentals increased by 26.6 percent year on year, with mature estate rates increasing by 25.7 percent and non-mature estate rates increasing by 27.4 percent. Three-room rentals increased by 22.5 percent year on year, four-room rentals increased by 28.2 percent, five-room rentals increased by 27.6 percent, and executive rents increased by 30.6 percent.
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