Business

Condo and HDB rents rise in January on lower volume; coronavirus outbreak may impact rental market

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

SINGAPORE – The housing rental market is likely to see a temporary slowdown in activity due to the coronavirus outbreak as data out on Wednesday showed rents for both non-landed private homes and HDB flats rose in January while the number of leasings fell.

Rents of private apartments and condominiums climbed 0.9 per cent month-on-month, after dipping 0.5 per cent in December, according to real estate portal SRX Property's flash data. Year-on-year, private home rents rose 2.9 per cent from January 2019, but are still down 15.6 per cent from their peak in January 2013.

The stronger rental prices came on the back of fewer private homes being completed last year and some older developments being demolished to make way for new homes after en bloc sales.

Leasing volume for private non-laned homes shrank for a sixth consecutive month, dipping by 4.9 per cent month on month to 3,892 units.

The lower rental volume could be attributed to the rising rental prices and the Lunar New Year period when the number of viewings typically fall as both landlords and tenants are on holidays, said Christine Sun, head of research and consultancy at OrangeTee & Tie. The peak rental season usually occurs around the second and third quarters of the year.

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Although leasing volume was lower, SRXs rental index increased, mainly because the decrease in supply was greater than the decline in demand, said ERA Realtys head of research and consultancy Nicholas Mak.

Year on year, rental volumes for condos are down 22.5 per cent and are also 7.5 per cent lower than the five-year average volume for the month of January.

Ms Sun expects a slowdown in the rental market as the outbreak of the virus, officially named Covid-19, hits sectors sectors like tourism, hospitality and Mice (meetings, incentives, conferences and exhibitions).

She said: "This may have some impact on hiring, which may affect the leasing market temporarily. However, we may expect leasing demand to rebound when the situatRead More – Source