Private home rents slip 1% in Q4, up 0.6 per cent for 2018; vacancy rate eases to 6.4% : URA

Rents of landed properties decreased by 2.1 per cent in the October to December quarter, compared with the 0.5 per cent increase in the previous quarter.
Rents of landed properties decreased by 2.1 per cent in the October to December quarter, compared with the 0.5 per cent increase in the previous quarter.PHOTO: ST FILE

SINGAPORE - Rents of private residential properties declined 1.0 per cent in the fourth quarter of last year, compared with a 0.3 per cent increase in the previous quarter, according to data from the Urban Redevelopment Authority (URA) released on Friday morning (Jan 25).

For the whole of 2018, private home rents increased by 0.6 per cent, compared with a decline of 1.9 per cent in 2017.

Rents of landed properties decreased by 2.1 per cent in the October to December quarter, compared with the 0.5 per cent increase in the previous quarter. Rents of non-landed properties fell by 0.8 per cent, compared with the 0.3 per cent increase in the previous quarter.

For the whole of 2018, rents of landed and non-landed properties increased by 2 per cent and 0.4 per cent respectively.

Rents of non-landed properties in the Core Central Region (CCR) decreased by 0.6 per cent, compared with a 0.9 per cent drop in the previous quarter. Rents in the Rest of Central Region (RCR) decreased by 0.5 per cent, compared with the 1.5 per cent increase in the previous quarter. Rents in the Outside Central Region (OCR) fell by 1.7 per cent, compared with the 0.9 per cent increase in the previous quarter.

For the whole of 2018, rents of non-landed properties in CCR decreased by 0.1 per cent, while rents in RCR and OCR increased by 1.1 per cent and 0.7 per cent respectively.

The stock of completed private residential units (excluding ECs) increased by 3,165 units in the fourth quarter, compared with an increase of 83 units in the previous quarter. The stock of occupied private residential units (excluding ECs) increased by 4,674 units in the fourth quarter, compared with an increase of 1,042 units in the previous quarter.

 

As a result, the vacancy rate of completed private residential units (excluding ECs) fell to 6.4 per cent at the end of the fourth quarter, compared with 6.8 per cent in the previous quarter. This is an improvement, according to OrangeTee & Tie research and consultancy head Christine Sun, given a bigger jump in available private homes in the fourth quarter.

The improving vacancy rate and rents may indicate that the leasing market could be on the road to recovery, she added.

Another good sign is an increasing number of large firms like Dyson may continue to shift their headquarters or key operations here in view of growing global geopolitical uncertainty. "Global brands and MNCs looking for stability and long-term investment potential will find Singapore highly attractive for its political stability, effective infrastructure and business friendliness," she said.

Vacancy rates of completed private residential properties at the end of the fourth quarter in CCR, RCR and OCR were 7.9 per cent, 7.4 per cent and 5.1 per cent respectively, compared with the 10.4 per cent, 8.1 per cent and 4.5 per cent in the previous quarter.