Compared to a year ago, rents have fallen 5.6 % and 4.1 % respectively for private non-landed homes and HDB flats in November, flash estimates from SRX Property shows. An estimated 3,304 rental transactions involving private non-landed homes were inked in November, down 7.8 % month on month but up 12.6 % from a year ago.
Going forward into 2016, some property experts expect rental volume to remain firm as more and more tenants go for 12-month leases, which translates to more frequent transactions. Two-year leases have become less popular this year, and the current standard preference is for one-year lease, or even 10-month lease.
A significant jump in the increase in completed suburban condominiums recently also contributed to the more severe rental weakness in the suburban area or Outside Central Region (OCR) than elsewhere. Year-to-date, private non-landed units in the OCR fell the most by 7.4 %, followed by 3.5 % in the city fringe or the Rest of Central Region (RCR) and 2.5 % in the Core Central Region (CCR).
In November alone, private non-landed units in the CCR, RCR and OCR experienced rental declines of 0.7 %, 2 % and 0.7 % respectively, according to SRX Property flash estimates.
Depressed leasing conditions in the private residential market continue to weigh down the HDB rental market, consultants note. Rents for transactions across all HDB flat types fell in November from a month ago – with three-room, four-room, five-room and executive flats marking rental declines of 0.5 %, 0.1 %, 0.7 % and 2.5 % respectively. But HDB rental transaction volumes rose 6.3 % month on month in November to 1,822 flats – a 3.9 % uptick from November last year.