Condo rental market reaches Nash’s equilibrium in June: property firm

SRX and 99.co said condo rental market grew 0.3% in June 2023.

Property analysts revealed that condo rents posted a 0.3% increase MoM in June 2023 from May 2023.

SRX and 99.co said the increase saw a flat movement that see-saws between 1144.5 and 145.8 for the past four months. This indicates that “both property owners and tenants have reached a consensus on the maximum amount they are willing to pay to rent an apartment."

Per region, CCR rents MoM increase by 0.8% while RCR and OCR record rent decrease of 0.6% and 0.2%, respectively. Year-on-year, overall rents went up 24.0% from June 2022. YoY, rents in CCR, RCR, and OCR increased by 20.5%, 24.7%, and 25.6%, respectively.

As per volumes, it grew by 12.5% month-on-month. An estimated 5,810 units are rented in June 2023 from 5,164 units that were rented in May 2023.

YoY, rental volumes dropped 3.9%. Volumes are 8.2% lower than the five-year average volume for the month of June.

By region, in June 2023, 37.1% of the total volumes are from OCR, 33.8% from RCR, and 29.0% from CCR.

For HDB rental market, it grew by 1.4% from May 2023. Mature and Non-Mature Estates rents rose by 1.6% and 1.4%, respectively. Per room types, 3 Room, 4 Room, 5 Room, and Executive rents increase by 1.5%, 1.8%, 0.2% and 2.2% respectively.

Year-on-year, overall rents went up by 24.6%. Year-on-year, Mature Estates and Non-Mature Estates rents rose by 23.3% and 26.2% respectively.

Year-on-year, all room types documented rent growth: 3 Rooms by 22.1%, 4 Room by 25.1%, 5 Room by 26.5%, and Executive rents by 27.9%.

Volumes increased by 4.6% month-on-month. An estimated 2,990 HDB flats were rented in June 2023 compared to 2,859 units in May 2023.