Foreigners hit by cooling measures boost condo rental volumes in June

Volumes grew 12.5% MoM.

Foreigners waiting for their permanent residency or citizenship to be approved were likely to have contributed to the increase in condo rental volume in June, according to Huttons CEO Mark Yip.

According to Yip, more foreigners are renting after the cooling measures imposed in April 2023, which also pushed up rents in the Core Central Region (CCR)

Many locals, on the other hand, have begun vacating their rental units and shifting to new condos and flats, said OrangeTee’s Senior Vice President of Research and Analytics, Christine Sun.

“Some expats have also vacated after moving back to their countries or relocated to work elsewhere,” Sun added.

This shift will likely affect demand for the condo rental market.

Meanwhile, Sun underscored that private rents may be stabilising.

“Some landlords are facing increasing pressure as the housing supply gradually builds up with more home completions,” Sun said.

In June, rents only rose by 0.3% MoM. Unlike the CCR, the Rest of Central Region and Outside the Central Region recorded decreases in rent in June.

Softness in rents in the Rest of Central Region and Outside Central Region in June was likely due to more homes being completed in these markers in recent months.

“The increase in supply coupled with a quiet labour market may have led to some softness in rents in the RCR and OCR,” Yip added.