SINGAPORE (The Straits Times/Asia News Network): The rental prices for Housing Board flats and personal residences continued to rise in April, hitting new highs in each markets, whereas leasing volumes dipped.
Condominium rents final month surpassed the earlier peak in January 2013 by 1.8 per cent, whereas HDB rents noticed a record improve 12 months on 12 months, in line with flash figures from actual property portals 99.co and SRX launched on Wednesday (May 11).
Overall, rental rents rose by 2.3 per cent in contrast with March’s 2.9 per cent, and HDB rents climbed at a faster tempo of 1.9 per cent in contrast with 1.4 per cent the month earlier than.
This marks the sixteenth straight month of development for rental rents and the twenty second for HDB rents.
HDB rents set a record throughout all flat varieties in each mature and non-mature estates, rising 13.2 per cent for three-room, 14.7 per cent for four-room, and 15.1 per cent for five-room flats in contrast with April final 12 months.
In March, HDB rents surpassed the earlier peak of August 2013 by 1 per cent.
Rental development for condos was noticed throughout the board, in central Singapore, metropolis fringes and the suburbs. Year on 12 months, rental rents have been up 15.1 per cent from April final 12 months.
The most rental models rented have been in the suburbs, accounting for 38.1 per cent of whole rental quantity.
Property analysts mentioned low rental inventory and a scarcity of latest properties brought on by building delays drove up rents.
ERA Singapore head of analysis and consultancy Nicholas Mak mentioned: “Rental rates in both the HDB and condo markets are projected to continue to rise as leasing demand is expected to remain healthy, supported by both local residents and newly arrived foreigners.”
OrangeTee & Tie senior vice-president of analysis and analytics Christine Sun famous that rents rose at a faster tempo in March and April, in contrast with April to December 2021.
“Rents have been escalating over the past few months, and market resistance could be setting in. More tenants are renting units together to share costs,” she mentioned.
This might push some Malaysians to not renew their leases and transfer again throughout the Causeway, opting as a substitute to journey to Singapore usually, Ms Sun added.
But Huttons Asia chief government Mark Yip mentioned many Malaysians are uncertain if the borders will keep open indefinitely.
“They are adopting a wait-and-see attitude and renewing their lease for a short period of time. This supported HDB rents in April,” he mentioned.
Rental quantity for the condominium market dipped 21 per cent to an estimated 3,551 models final month, in contrast with 4,497 in March.
Fewer HDB flats have been additionally leased final month, down by 20.7 per cent to an estimated 1,382 models, in contrast with 1,743 models the month earlier than.
Rental quantity in each markets dropped to the bottom degree since May 2020, when the property markets have been restricted by the circuit breaker, famous Mr Mak.
“The border reopening in April caused some Malaysian workers to rethink their accommodation plans, leading to a drop in the number of new leasing transactions last month,” he mentioned.
As rental inventory was low, fewer models have been leased and plenty of have been snapped up rapidly, Ms Sun added.
“Some tenants booked units without viewing them, as competition is stiff and stock is lacking. To secure units quickly, some were transacted above the asking rents,” she mentioned.
Mak mentioned extra foreigners are anticipated to maneuver to Singapore for work and examine.
“In the coming months, the rental market will undergo a period of adjustment, as some tenants leave and others take their places,” he added.