Condo rents up 1.8% in April

CCR led the pack as rents rose 2.4% YoY.

Condo rents edged up 1.8% YoY in April as all regions saw increases in rents, according to data from SRX. On an MoM basis, condo rents slipped 0.9% and are down 15.7% from its peak in January 2013.

The Core Central Region (CCR) led the pack as rents in the region rose 2.4% YoY, followed by rents in the Rest of the Central Region (RCR) with a 1.7% YoY rise and the Outside Central Region (OCR) rents with a 1.4% YoY climb.

As for volume, an estimated 3,068 units were rented out in April, which is a 40.6% YoY and 36.5% MoM crash. Breaking down by regions, 41.5% of the total volumes are from OCR, 30.3% from RCR and 28.2% from CCR.

Meanwhile, HDB rents also inched up 1.3% YoY despite the 0.2% dip MoM. Mature estates and non-mature estates rents rose by 0.3% and 2.3% YoY, respectively.

Three-room units led the increase in rents as it went up 1.5% YoY. Four-room rents jumped 1% YoY, whilst five-room rents edged up 1.3% YoY. Only executive rooms dropped in rents by 0.7% YoY.

HDB volumes crashed 41.3% YoY and 36.7% MoM to 1,260 HDB flats. Four-room flats accounted for 36.1% of the volume, 30.8% from three-room, 26.5% from five-room and 6.6% from executive room.

OrangeTee & Tie’s head of research & consultancy Christine Sun noted that the movement in rents were driven by transactions in March as well as contract renewals.

“Some rental transactions still took place last month. Many tenants renewed their contracts during the circuit breaker period to avoid the hassle of scouting for another home. Some face difficulty arranging house movers during this period of time should they choose to rent another place,” commented Sun.

Sun said that the rental market may continue to face challenges in the coming months as many companies may adopt a more conservative hiring outlook as well.

“The spectre of a second wave of infections may cause some countries to re-impose lockdowns or extend travel restrictions which will continue to impact the rental markets here,” she added.