Rents for condos and private apartments up, Latest Business News - The New Paper

Rents for condos and private apartments up

This article is more than 12 months old

Rents increased for condominiums and private apartments last month but slipped for HDB units, according to SRX Property flash estimates released yesterday.

Experts attributed the rise in private rents to an increased supply of condominiums suited to higher income tenants.

Private residential rents rose 0.2 per cent month-on-month in July, less than June's revised 0.6 per cent increase.

They were 18.9 per cent lower than their January 2013 peak.

Year-on-year, however, rents slipped 2.7 per cent for private condominiums.

"The market seems dynamic as more highly qualified foreigners with higher spending power entered the tenancy market," said Mr Francis Tan, chief investment officer at Scotia Real Estate Group.

Barring any major shocks to the economy, or a change in policy, the private rental market will continue to do well for the second half of the year, he said.

But HDB rentals slid 0.1 per cent from June and were down 4.2 per cent from July last year. They were down 13.6 per cent from their peak in August 2013.

Rents in mature estates decreased by 0.2 per cent, while those in non-mature estates rose 0.1 per cent, SRX Property data showed.

Stricter immigration policies in recent years have seen a dwindling number of low-skilled workers, which may have had an impact on demand for HDB units, Mr Tan said. - THE STRAITS TIMES