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Singapore
 

HDB rents 'to stay depressed for rest of 2014' due to sluggish demand and rising supply

Sluggish demand, rising supply will weigh on rates, analysts say

Published on Aug 19, 2014 6:38 AM
 
Flats in Woodlands are still attractive to tenants, although rents have been falling, said one property agent. Woodlands, Jurong West and Tampines have seen the most rental transactions in the past month, based on an STProperty "heat map" using HDB data. -- ST PHOTO: KUA CHEE SIONG

Lean times are here to stay for Housing Board landlords, with rentals likely to stay depressed for the rest of the year.

Sluggish demand, arising from foreign labour curbs that have shrunk the pool of tenants, combined with a rising supply of HDB flats, will weigh on rental rates, said property analysts.

Already, Singapore Real Estate Exchange data shows the HDB rental index has fallen 2.3 per cent since the start of the year, hitting a three-year low last month. The median rent was $2,300.

This is only the beginning of a continued slowdown, said property analysts.

 
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Background story

ADJUSTING EXPECTATIONS

Landlords are realistic as the market is not doing very well.

- ERA Realty agent Noel Lu. Many have been adjusting their rentals downwards, said property agents, who also said the problem is simply a lack of demand.

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