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SINGAPORE – More people rented condo units and apartments from the Housing Board (HDB) in November, even with border restrictions still in place.
Condo rental volume increased 3.8 percent month-over-month to an estimated 4,443 units in November from 4,281 units in October, according to flash data from real estate portal SRX Property released on Wednesday (December 16). Year over year, private leases are 1.1% higher than in November 2019, before the start of Covid-19.
HDB’s rental volume increased 6.7 percent per month to an estimated 1,762 apartments in November, compared to 1,652 apartments in October. Year-over-year, HDB leases are down 11.7 percent since November of last year.
ERA Realty’s head of research and consulting, Nicholas Mak, said that while the month-over-month increase in rental volume “may seem surprising” as foreigners are a major source of residential rental demand, a group of new tenants could be newly married young couples.
“These young families may wish to live independently while they wait for their new permanent homes, such as HDB flats or executive condos, to be completed, and may rent HDB flats or private condos (in the meantime), depending on their housing budgets,” he said . said.
However, he noted that the increase in rental volume is “marginal”, with a mixed impact on the rental index, as the HDB rental index was unchanged, while that of private apartments rose only 0, 4 percent month to month.
Overall rents for condo units in November increased 0.5 percent from the prior month, rising for the fifth consecutive month. Year-over-year, rents continued to fall 0.6 percent from November 2019.
Rents in the rest of the central region and the external central region increased by 1.6% and 0.2% per month, respectively, while those in the central central region decreased by 0.4%.
The general rents of the HDB flats in November were unchanged from the previous month. But compared to a year ago, they are up 0.8 percent.
Rents on mature farms decreased 0.4 percent, while those on immature farms increased 0.6 percent.
Rents for four-, five-, and executive apartments increased 0.1%, 0.4% and 0.8%, respectively, while rents for three-bedroom apartments decreased 0.3%.
Rents are down 13.7 percent from their peak in August 2013, according to SRX data.
ERA’s Mak said he expects Singapore’s real estate market to receive a “shot in the arm” next year as the government implements the Covid-19 vaccination program and gradually eases border restrictions.
“More foreigners are expected to return to Singapore next year and one of the beneficiaries will be the residential rental market,” he said.
Christine Sun, head of research and consulting at OrangeTee & Tie, said that one sector that can increase the employment of foreign professionals with specific skills is the digital financial sector, as the Monetary Authority of Singapore recently granted four new full digital banking licenses. .
“These highly skilled workers, who are likely to get higher incomes or housing budgets, will likely benefit the middle to upper tier of the rental market, such as private homes in the upscale and slums of the city,” he said.
But he predicts that total rental volume next year may decline by 5-8% and rents may drop as much as 4% as more homes are completed amid macroeconomic uncertainties.
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