Private home rents down for 10th consecutive month in November!

By The Folks @PropTalk - December 11, 2014 No Comments

Rents of private condos continued to soften in November, largely within the expectations of property consultants who are projecting that the weakness will run into next year, given the looming supply glut.

SRX Property flash estimates put the slide in rents of private non-landed homes at 0.8%, making November the 10th consecutive month of decline. Rents have fallen 5.7% since the start of the year and 5.3% from November 2013.

The rental decline was more severe in the suburbs - 1.2%; the dip was 0.3% for city apartments and 0.7% for city-fringe units.

Leasing volumes also shrank. The estimated total of 2,892 units rented out during the month was down 11% from October, but 9.8% higher than in November 2013,

ERA Realty key executive officer Eugene Lim said that the leasing market for private condos is facing a double whammy - an upcoming supply glut and a slowdown in demand from the continued economic restructuring.

Older units have taken a bigger hit, as tenants prefer newer ones.

This can only get worse next year, with rents likely to fall by as much as 8 - 10%, said Mr Lim.

However, the strong leasing volumes this year - the number of leases inked hit 46,632 in the first nine months of the year, up 8.7% over the corresponding nine months last year - could be attributed to tenants switching over to newer units because the falling rents work in their favor, said property consultants.

Info Source: BT

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