New launch condo rental volume, HDB decrease as November rent increases.
Housing rental volume fell in Singapore in November compared with the rise in Housing and Development Board (HDB) apartment and new launch condo rents, which saw the 23rd and 23rd month of rent increases respectively. 29 in a row.
According to quick estimates from SRX and 99.co on Wednesday (December 14), new launch condo rents in November increased 2% month-on-month and 34% year-on-year, mainly thanks to contributions from the Regions. Outside Center (OCR), where rents increased 0.8% from 36.5% in October year-over-year.
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Rents in the Rest of the Central Region (RCR) increased 1.5% MoM and 33.9% YoY, while rents in the Main Central Area (CCR) increased 0.8% MoM before and 30.6% compared to November 2021.
Pow Ying Khuan, head of research at 99 Group, said one factor driving the November apartment rents higher could be the continued spillover from cooling measures from September 30. includes a 15-month waiting period for private homeowners looking to purchase resale HDBs. apartments after selling their property.
“Soon after the announcement, HDB received 450 appeals from private landlords about the 15-month waiting period and will be flexible in waiving the waiting period for some of them,” Pow noted.
“For those who fail to appeal, it is likely that they will have to wait and consider renting afterwards.”
The relatively slower price increases in the RCR and CCR, he added, could present price resistance in these areas, given the convenience of downtown train stations on the Thomson-East Coast Line may attract more tenants to choose suburban housing.
An estimated 4,160 new launch condos were rented in November, down 4.5% from 4,355 units in the previous month. This is 7.2% below the 5-year average volume for November and represents a 16.5% drop from the previous year's volume.
Breaking down by region, 40.4% of total new launch condo rentals are from OCR, 32.9% from RCR and 26.7% from CCR.
Christine Sun, senior vice president of research and analysis at OrangeTee & Tie, said the drop in rental deals in November could be attributed to more renters and landlords taking a vacation during the last period. years, resulting in fewer home views.
She also emphasized that the supply of available new launch condos for rent is declining, as the trend of tenants signing long-term leases will gradually lead to fewer rentals.
“Going forward, there will be more (private) houses to be completed next year. New stockpiles can help ease the supply crunch and slow rent growth,” she said.
In HDB's rental market, prices are up 1.6% since October 2022 and 27.8% year-over-year.
Mature and unmature real estate rents increased by 1.9% and 1.3% respectively month-on-month, driven by rents for three-room (3.2%), five-room (2.1%) apartments. and luxury apartments (1.2%). ) for rent. The rent for people staying in 4 rooms increased slightly by 0.1% compared to the previous month.
Compared to the same period last year, HDB's total rent increased by 27.8% with mature and unmatured properties increasing by 27.4% and 28% respectively. All room types recorded a year-over-year increase in rents with three-room, four-room, five-room and premium rents increasing by 26.3%, 27.1%, 29.6% and 31.4%, respectively.
99 Group's Pow said the higher month-over-month demand for three-room HDB units in November could be attributed to its "rental appeal" relative to other room types. Soaring room rates in four- and five-room apartments, he added, could also cause tenants to downgrade their unit type to meet their rental budget.
“We note that especially in popular towns like Bishan and Bukit Merah, Downtown and Queenstown, the median rent for 4-, 5-room, and luxury apartments has surpassed the $3,000 mark. Singapore. On the other hand, the average rent for a three-room apartment remains below S$3,000 across the board,” said Pow.
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