Private condo rents may grow by 2% in 2019
Leasing trends appear to be positive given the falling vacancy rate and growing rents, according to a report.
Rents of private condominium units in Singapore are expected to increase by 2.0 percent by end-2019, reported Singapore Business Review citing a Jefferies report.
This comes as the supply of Government Land Sales (GLS) and Build-to-Order (BTO) units remain low.
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In fact, the confirmed supply of 2,025 units for the first half 2019 GLS is “the lowest since H1 2016”, said Jefferies. “If the trend of low GLS supply persists, it may lead to the next wave of en bloc unless developers diversify or consolidate.”
Leasing trends within the city-state also appear to be positive given the falling vacancy rate and growing rents, added the firm.
It revealed that private leasing volumes rose 8.0 percent annually since 2013, exceeding the rise in resident population (0.8 percent), foreign population (1.6 percent) and private residential stock annual growth (5.0 percent).
“Perhaps it is a combination of shortening of lease tenor, leasing of rooms versus homes and less owner-occupancy,” explained Jefferies.
Meanwhile, the firm expects prices of private condominiums to remain flattish this year, with improving yields due to rising rents.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com