HDB, private apartment rents down in February: Property index

Rental prices for Housing and Development Board (HDB) flats and non-landed private properties continued their downward trend in February, led by five-room HDB flats and homes in the city fringes.

Rental prices for Housing and Development Board (HDB) flats dipped 0.9 per cent from the previous month in February, according to a local property index.

Year-on-year, rental prices for HDB flats in February fell 3.7 per cent, and were down 9.1 per cent compared to its peak in August 2013, flash estimates from SRX Property showed.

Rents for three-room flats fell 0.6 per cent, while five-room and executive flats saw a decline of 1.8 per cent and 0.9 per cent, respectively. Rents for four-room flats saw a 0.1 per cent increase.

The number of HDB flats rented dropped 20.1 per cent in February, with an estimated 1,371 flats rented, down from 1,715 units the previous month.

PRIVATE APARTMENT RENTAL PRICES FLAT

Rental prices for dipped 0.7 per cent from the previous month. Year-on-year, rents were down 5 per cent, according to SRX Property.

Private apartments in the Rest of Central Region and Outside Central Region saw decreases in rents of 1.8 per cent and 1.3 per cent, respectively, while units in Core Central Region increased in rents by 1.3 per cent.

Rental volume declined 17.5 per cent, with an estimated 2,797 units rented, down from 3,389 the previous month.

Property agency ERA said the fall in rents was not surprising. According to ERA, landlords are finding it increasingly difficult to secure tenants, as leasing demand has not kept up with supply of new private homes. The lower private rents have, in turn, spilled into the HDB rental market.

Source : Channel NewsAsia – 9 Mar 2016