Condo, HDB rents rise in February; leasing volume dips

SINGAPORE – The rental prices for Real estate Board flats as well as exclusive apartments continued to climb last month while leasing quantity in both markets dipped.

Condominium rents last month climbed by 1.4 percent, while HDB rental fees rose by 1.7 percent, according to blink numbers from real estate websites 99. co and also SRX released on Wednesday (March 16).

This notes the 14th straight month of development for apartment leas as well as the 20th for HDB rents.

Rental growth was observed at condos across the board – in main Singapore, the city fringes as well as the residential areas as well. Compared to February last year, apartment rents were up 11.8 percent.

But rental volume for the condo market fell by 5 per cent to an approximated 4,248 systems, compared to 4,473 in January.

The biggest share of systems leased was found in the suburbs, which made up 37.3 per cent of complete rental volume.

Residential or commercial property experts said the shrinking rental stock and a lack of brand-new homes triggered by delays in building drove up rents.

Ms Christine Sun, elderly vice-president of research as well as for analytics at real estate company OrangeTee & Connection, stated: “Numerous would-be property buyers, who were evaluated of the market or were affected by brand-new cooling actions, are improving demand for rentals and pressing rental fees higher.”

Residential property cooling actions introduced in December in 2014 elevated the Extra Buyer’s Stamp Task (ABSD) prices from 12 per cent to 17 per cent for residents purchasing their second home, and from 15 percent to 25 percent for those buying their 3rd and also subsequent ones.

The overall financial debt servicing proportion for consumers has been tightened from 60 per cent to 55 percent.

The ABSD is 30 percent, up from 20 percent, for foreigners buying any type of residential property.

Ms Sun added that lots of owners of private residences as well as HDB apartments like Leedon Green have actually been marketing their systems as resale rates have gotten on the rise. “New completions are likewise not fulfilling the need for real estate,” she said.

ERA Singapore head of research and consultancy Nicholas Mak noted that the delay in the completion of Build-to-Order apartments as well as brand-new condominium tasks has actually created some homes to rent out momentarily, increasing rental fees.

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