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Private-home rentals fall for the second month

SINGAPORE – Rental prices for non-landed private homes in Singapore fell in June, with analysts saying they do not expect it to improve anytime soon amid stiff competition for a limited carton of tenants in a large supply pool.

A view of private homes in Singapore. TODAY file photo

A view of private homes in Singapore. TODAY file photo

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SINGAPORE – Rental prices for non-landed private homes in Singapore fell in June, with analysts saying they do not expect it to improve anytime soon amid stiff competition for a limited carton of tenants in a large supply pool.

Overall rentals for non-landed private homes fell by 0.5 per cent in June from a month ago, extending from the 0.6 per cent decline in May, flash estimates by SRX Property showed today (July 15). On-year, rental prices were lower by 6.5 per cent.

Rental volume increased by 1 per cent last month from May to an estimated 3,777 units. Compared to a year ago, last month performed 15.4 per cent higher.

“Rents continued their downward trend in June. This is most probably due to stiff competition for a limited pool of tenants, as more private residential units are completed,” said Mr Eugene Lim, Key Executive Officer of ERA.

With the increasing supply of homes outweighing demand, rentals will continue to go down, said Mr Nicholas Mak, SLP International executive director of research and consultancy. The whole of this year would contribute to about 21,800 new private homes, which is 84 per cent higher than the annual average supply of 11,865 units per year between 2010 and 2014, he said.

“Moving forward, the downward pressure on rents are not expected to ease any time soon, given that these two years see record numbers of condominium developments being completed,” said Mr Lim.

Non-landed private homes in the Core Central Region and Outside Central Region experienced month-on-month declines in rents at 0.8 per cent and 0.7 per cent respectively, while the Rest of Central Region was unchanged.

“All regions would face the same supply outgrowing demand situation. For OCR in particular, we expect it to face more downward pressure as there will be more supply in that region,” said Mr Mak.

In the Housing Development Board (HDB) segment, overall rentals were up by 0.1 per cent last month from May. Year-on-year prices were lower by 1.8 per cent. Rental volume for the HDB segment increased by 0.1 per cent from May on-month to an estimated 1902 flats. Compared to a year earlier, volume was higher by 14.2 per cent.

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