Vacancy rate for rented private homes worsened in Q2 as supply hit a new peak

Vacancy rate rose to 8.9%.

Following the addition of 8,425 rented units on Q2, the island-wide stock of private residential units stood at 338,728. Notably, net new supply had almost doubled from the previous quarter and reached a new height since Q2/2015’s 6,889, said Savills.

With new supply outpacing demand, the vacancy rate for private homes worsened by 1.4 percentage points (ppts) to 8.9% in Q2/2016.

Nonetheless, the research firm said that prime residential developments have been attracting a steady stream of tenants.

For the second quarter, rental contracts at The Sail @ Marina Bay and Refl ections at Keppel Bay have stayed above the 100-level mark in Q2/2016 – recording 174 and 155 deals, respectively. This comes alongside 101 deals at Spottiswoode Residences, which is 159.0% more than the preceding quarter.