Construction sector, labour market recovery will raise condo rental demand: analyst

Condo rentals went up for the 19th consecutive month in July 2022.

Property analysts said they expect labour market revival and construction industry’s gradual recovery will boost demand in rents for condo.

“Rents for condo and HDB are expected to rise albeit at a moderate pace for the rest of 2022,” said Huttons CEO Mark Yip in a statement, commenting on the condo rents figures.

Transaction volume for condo rents went up 5.3% MoM to 4,809 units in July. Yip said this was attributed to enquiries from expats as companies resort to more foreign employees to ease firms’ labour issues.

Experts from One Global Group said the condo rental market will still be “firm” due to a rise in completed projects.

OrangeTee analysts said more tenants are accepting rental increases whilst housing stock is lacking in the market.

“Foreigners and PRs who have just returned from overseas have to accept the higher rental costs as they do not have other housing options,” it added.