Condominium rents went up 3.2% in March 2020

About 20000 HDB units to MOP after 2020
Tight supply of housing and rise in leasing demand prompted landlords to increase rents.

Condominium rental rates inched up 3.2 percent Year on Year (YoY) and 0.2 percent Month on Month (Mom) in March 2020 as every district documented YoY increases, mentioned data from SRX property. Rents dropped 15 percent from its highest point back in January 2013.

The Rest of Central Region (RCR) had the highest YoY hike in rents at 4 percent, with the Outside Central Region (OCR) being second at 3 percent. The Core Central Region (CCR) recorded 2.4 percent. On a MoM comparison, OCR and RCR rents rose by 0.8% and 0.3%, respectively, while the CCR rents declined by 0.8% in March 2020. This is good news for property agents who got the right property agent mentors as they will have spotted the trends and taken advantage of the increase.

“Because of the restricted supply of completed residences and a sudden rise in rental demand, a few landlords raised their asking rates. But, we have also noticed some landlords provided discounts or  rebates to assist their tenants whose livelihoods have been impacted by the pandemic, which is a caring and compassionate move,” commented Miss Christine Sun, senior Vice president of consultancy & research at OrangeTee & Tie.

5,244 units were leased in March, a rise of 10.9 percent MoM and 7.6 percent more than the 5-year average volume for the month of March. But the number was 5.9 percent YoY lesser compared to a year ago.

Analyzing each region, OCR made up of 40.6 percent of the total volume. RCR took up 32.6 percent of the condo rental volume, and CCR took up 26.8 percent. It is because of large demand for condo units in the OCR, that UOL is ready to launch a new Canberra Drive condo in 2021.

“The current tenants could have renewed their contracts as a number of them were reluctant to source for new homes, in order to reduce their chances of getting Covid-19, while others who have returned from overseas would need a residence to complete their stay-home notice,” Christine said.

Ms Sun also added that a few Malaysian workers may have scrambled to find a unit to lease before the lockdown commenced in their country. Some of them may have hurried to commit to a unit prior to the circuit breaker measures being imposed.

In the meantime, HDB rents went up by 1.5 percent YoY in spite of the 0.5 percent MoM drop recorded in March. SRX property declared that rents fell 13.7 percent from its peak back in August 2013.

“The public residential market has experienced a similar trend where volumes rose last month too, with probably the exact reasons mentioned earlier for the private rental market. The rise in supply of HDB flat units available has likely outweighed the increase in short-term demand for leasing,” Miss Sun added.

Source: https://sbr.com.sg/residential-property/news/condo-rents-32-in-march

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