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
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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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.