Condo rents down 0.9% in December

CCR and OCR condo rents declined 1.7% and 1.1%, respectively.

Overall condo rents dipped 0.9% MoM in December as rents in the Core Central Region (CCR) and Outside Central Region (OCR) fell, according to an SRX report. The monthly figure is 16.6% lower than its peak in January 2013.

CCR and OCR condo rents declined 1.7% and 1.1% MoM, respectively, whilst rents in the Rest of Central Region (RCR) inched up 01.% MoM. On a YoY basis, all regions saw increases, led by RCR at 4%. CCR and OCR rose by 3.9% and 3.1% YoY, respectively.

Further, condo volumes were also down 2.8% MoM in December, with 4,011 units rented compared to 4,126 units in November. This figure is also 1.2% YoY higher and 13.6% higher than the 5-year average volume in December. A total of 58,236 NLP rental transactions were recorded in 2019, which was 2.3% higher than in 2018.

Breaking down by regions, 43.3% of the volume comes from OCR, 30.5% comes from RCR and 26.3% comes from CCR.

Meanwhile, HDB rents edged up 0.1% MoM and 1.3% YoY in December. Four-room and executive rents rose by 0.6% and 1.1% MoM, respectively, whilst three-room rents fell by 1.4% MoM. Five-room rents remained flat over the same period.

“Leasing demand had been robust amidst a tightening of new inventory supply and depleting stock in 2019. Many homes were demolished to make way for newer developments after the last collective sales cycle. As a result, the lower inventory has probably helped to prop up rental prices last year,” said Christine Sun, head of research & consultancy at Orange Tee & Tie.

Mature estates rents increased by 0.2% MoM, whilst non-mature estates rents slipped by 0.1% MoM.

HDB volumes declined 8.6% MoM, as 1,753 HDB flats are rented in December compared to 1,917 units in November. A total of 23,958 HDB rental transactions were recorded in 2019, which was 1.9% higher than in 2018.

Breaking down by room types, 35.9% of total rental volume comes from four-room, 32.7% from three-room, 25.2% from five-room and 6.2% from executive.

“The number of leasing transactions may be rising in tandem with the increasing supply of flats being put up for lease last year. More flats could be put up for lease after reaching their five-year minimum occupation period,” Sun commented.