Residential leasing was in a slight decline this November, changing with a 1.1% decline in non-landed private home rents and a 0.5% drop in HDB rents.
SRX Property flash estimates show that rents fell 5.6% for non-landed private homes and 4.1% for HDB flats since one year ago.
Most tenants choose to take a shorter lease to profit from declining rents, noted ERA Realty exec Eugene Lim. This explains why there were more Qingjian Choa Chu Kang EC transactions inked when compared to the same month last year in month-on-month November residential rental transactions.
Choa Chu Kang Ave 5 Inz Residence EC
A probable 3,304 transactions for rentals with non-landed private homes were made in November. This was down 7.8% month-on-month, but up 12.6% from last year.
“Going forward into 2016, we can expect Choa Chu Kang Avenue 5 rental volume to remain firm as more and more tenants go for 12-month leases, which translates to more frequent transactions,” he said.
Ong Kah Sned, R’ST Research Director, noted that intensifying competitions between landlords particularly and the typically weak year-end period all have contributed to November’s weak Choa Chu Kang Ave 5 EC rental rate.
The preference currently is for one-year or even 10-month leases, instead of two-year spans, added Mr. Ong. “Foreign professionals who have uncertainty in their placement in Singapore, or who have high possibilities to be relocated to help their headquarters in making inroads in emerging Asian markets, prefer short leases.”
Qingjian Realty Choa Chu Kang EC Brickland
An unusual increase in Qingjian Choa Chu Kang Ave 5 Tender also recently added to the more severe weakness in suburban area or Outside Central Region (OCR) rentals.
Non-landed private units in the Outside Central Region lost the most by 7.4%, ahead of 3.5% in the Central Region (RCR), and 2.5% in the Core Central Region (CCR).
SRX Property flash estimates that in November alone, private non-landed units in the CCR, RCR, and OCR experienced rental declines of 0.7%, 2% and 0.7% respectively.
“As there were substantial Qingjian Choa Chu Kang Tender for Inz Residence EC as well as private residential properties completed in 2015 and 2016, it is expected that average non-landed private residential rents will fall by about 5% in the whole of 2015 and about 5% in 2016 as well,” Mr. Ong said.
Leasing conditions remain depressed in the private residential rental market. They continue to weigh down the HDB market, consultants observe.
Qingjian Realty EC
HDB rental transaction volumes gained 6.3% in November up to 1,822 flats which displayed a 3.9% increase from last year. Choa Chu Kang Avenue 5 EC by Qingjian Rents for all HDB flats fell in November, with three, four, and five room, and executive flats marking declines of 0.5%, 0.1%, 0.7%, and 2.5% respectively.
“Due to stiffer competition, HDB rents are expected to come under greater pressure going into 2016,” Mr. Lim said. But he noted that transaction volumes should remain high, because even a few expatriates have considered leasing an HDB flat instead of a private unit because of constraints in their relocation package.