Why rents rose faster in suburban condos rents in July

OCR rents rose 1.6% QoQ in July, whilst CCR only saw a 0.7% QoQ uptick.

Tenants looking for cheaper housing accommodation continued to flock to Singapore’s suburban areas, resulting in higher rent increases in the Outside Central Region (OCR), OrangeTee said.

Data from 99.co and SRX showed that rents rose 1.6% QoQ and 23.2% YoY in the OCR. Meanwhile, the Rest of the Central Region (RCR) and Core Central Region (CCR) posted a 1.1% QoQ and 0.7% QoQ increase in rents in July, respectively.

Apart from tenants opting for cheaper options, Huttons said the influx of students enrolling in international schools pushed up the demand for condos in OCR.

“For example, there was more demand for larger units in Skies Miltionia and The Miltonia Residences as these are near XCL World Academy. Many of the international schools are in the OCR,” Huttons said.

“The robust demand has pushed rents in the OCR higher in July compared to other regions,” Huttons added.

Meanwhile, OrangeTee said the stronger demand for HDB flats also shows that many homebuyers are moving to lower-priced accommodations.

“Rental demand for HDB flats remained strong, with July's volume being higher on a year-on-year basis and above the five-year average volume for July,” OrangeTee said.