The full article can be found in Lianhe Zaobao, Finance Section, Page 36, 12 July 2018.
The month of June is the low season for non-landed homes and Singapore’s overall non-land private housing rents decreased by 0.2 per cent from May.
SRX Singapore Property Price Index for non-landed private residential rentals showed that mid-range private home rents in the rest of central region (RCR) posted a 0.7 per cent increase, while high-end private homes rents in the core central region (CCR) and outside central region (OCR) posted a 1 per cent and 0.3 per cent decrease respectively.
Compared to June last year, the overall non-land private housing rent decreased by 0.2 per cent, where private home rents in the OCR remains unchanged, while CCR and RCR decreased by 0.8 per cent and 0.2 per cent respectively. Compared to its peak in January 2013, the overall non-land private housing rents decreased by 19.3 per cent.
Private housing rental volume also decreased by 1 per cent to 4,637 units in June from May. However, private housing rental volume increased by 0.6 per cent compared to June last year.
Nicholas said, “Since February this year, private housing rents have declined slightly, mainly because the rental demand has not kept up with the supply of private homes for rent. In the first quarter of this year, there were 1,200 new private home units.
Nicholas believes that the private rental market will remain weak in the coming months.
Speaking of the latest round of cooling measures announced last week, Nicholas believes that they will not have a negative impact on the private rental market. He pointed out that a small number of permanent residents may choose to rent a house instead of buying because of the higher additional buyer stamp duty (ABSD). As such, rental demand is expected to increase slightly.
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