In Singapore, residential leasing activity decreased in November despite growing rents for HDB apartments and condos, which marked the 23rd and 29th consecutive months of property rental growth, respectively.
Property rental spikes!
It has been seen that condo property rental increased in November by 2% from the previous month and 34% from the prior year. The Outside Central Region (OCR), where rents increased by 0.8% from October and 36.5% from the preceding year, was primarily responsible for this increase.
Also, rent in the Core Central Region (CCR) increased by 0.8% from the previous month and 30.6% from November 2021, while rents in the Rest of Central Region (RCR) increased by 1.5% from month to month and by 33.9% from year to year.
Reasons behind the rental increase
The reason behind increased property rental in November could be the ongoing impact of the Sep 30 cooling measures, which include a 15-month wait-out period for private homeowners wishing to resale HDB flats after selling their homes.
In November, 4,160 condo units were rented, a 4.5% decrease from the 4,355 units rented in October. It indicates a fall of 16.5% from last year’s levels and is 7.2% lower than the five-year average volume for November.
When broken down by region, the OCR accounts for 40.4% of total condo rental volumes, the RCR for 32.9%, and the CCR for 26.7%.
Property rental in mature and non-mature estates increased by 1.9% and 1.3%, respectively, from the previous month. HDB rentals increased by 27.8%, with mature and non-mature estates increasing by 27.4% and 28%, respectively.
In November, an estimated 1,691 HDB apartments were rented out, a decrease of 15.2% from the 1,995 units rented out the month prior.
According to room type, 36.7 percent of HDB rental volumes in November 2022 came from three-room apartments, 34.6 percent from four-room apartments, 22.7 percent from five-room apartments, and 5% from executive flats.
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.
Know more about my services,
Want to know more about property rental in Singapore?