According to research by Savills Singapore, private non-landed property monthly rent in upscale District 9, which includes the Orchard Road and River Valley neighbourhoods, was at its highest in November 2022.
- It is claimed that District 9, which is in the Core Central Region (CCR), had the highest median rental price for a three-bedroom apartment in November at $15,000 per month.
- District 1, which includes Boat Quay, Marina, and Raffles Place, came in second with a three-bedroom apartment’s typical monthly rental costing $12,400.
- At $9,750 per month, District 10, which includes Tanglin, Holland, and Bukit Timah, came in third.
- The median monthly rent for a three-bedroom in District 4, which includes HarbourFront and Telok Belangah, was $11,100 in November, up from $7,350 the previous month.
- The median monthly rent in the OCR increased to $6,400 as of November from $4,950 a year earlier in submarkets, including District 5, Clementi, and West Coast.
Rents will “remain tight” until 2023, according to Alan Cheong, executive director of research and consultancy at Savills Singapore, when incoming supply totalling 18,234 residential units will release pressure on the rental market.
Better yields due to the sharp rise in monthly rent
It is anticipated that demand for buildings purchased as investments will remain strong due to the sharp rise in monthly rent. Compared to a decade ago, an increase of 2-3% in interest rates would have less influence on buying desire.
Purchasers will likely accept the increased prices of private residential properties set at each new launch, given the relatively low quantity of new sales supply.
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I am Tyson Yuk, the founder of the blog Commercial Realty Singapore. With over 15 years of experience, my forte is in the commercial and luxury property line. With my blog, I aim to educate, advise and share tips and tricks with potential property buyers and investors to help them make successful property ventures.
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