Condo rents dip again, but those for HDB flats inch up

Condominium and private apartment rents dipped 0.2 per cent in June from May, after inching down by the same rate in May.
Condominium and private apartment rents dipped 0.2 per cent in June from May, after inching down by the same rate in May.PHOTO: ST FILE

Rents for non-landed private homes dipped last month for the second straight month but those for Housing Board (HDB) flats edged up again, according to flash data yesterday.

Condominium and private apartment rents dipped 0.2 per cent from May to last month, after inching down by the same rate in May.

Private rents dipped 0.5 per cent in the core central region and 1.1 per cent for the outside central region, but they rose 0.9 per cent for the rest of central region.

It was a brighter picture on a year-on-year basis, with rents ahead 1.9 per cent over June last year, noted SRX Property.

All regions were up: by 2.7 per cent in the core central; 2.1 per cent in the rest of central; and 1 per cent for outside central.

But private rents last month were down 17.5 per cent from their peak in January 2013.

There were 4,704 condos and private flats leased in the month - down 4.2 per cent from May and 6.4 per cent from June last year.

  • 4,622

    Private units leased in the second quarter, up 0.9 per cent from the first three months of the year.

  • 1,878

    HDB flats rented out last month, down 3.1 per cent from May but up 1.2 per cent on June last year.

Despite last month's fall, there were 4,622 units leased in the second quarter, up 0.9 per cent from the first three months of the year.

This is "within expectations" as more expats renew or sign new contracts in the second and third quarters, said Ms Christine Sun, OrangeTee & Tie's head of research and consultancy.

Ms Sun added that the social unrest in Hong Kong might "destabilise" the territory's status among investors as a stable financial hub.

"They may consider shifting their operations or headquarters to Singapore in the longer term, which will benefit the rental market here," added Ms Sun.

Meanwhile, HDB rents rose 0.4 per cent last month, for a second straight monthly rise, after inching up 0.1 per cent in May.

Mature estate rents were up 0.7 per cent while non-mature ones added 0.1 per cent.

There were 1,878 HDB flats rented out, down 3.1 per cent from May but up 1.2 per cent on June last year.

Ms Sun said some downward pressure on HDB rents is expected in the coming months due to an increasing supply as more flats reach their five-year minimum occupation period.

A version of this article appeared in the print edition of The Straits Times on July 11, 2019, with the headline 'Condo rents dip again, but those for HDB flats inch up'. Print Edition | Subscribe