Private condo rents in Singapore can grow by two percent before 2019 ends. That’s according to Jefferies and a Singapore Business Review article. The low supply of Government Land Sales (GLS) and HDB Build-to-Order (BTO) units only reinforces this possibility.
The property cooling measures introduced last year led to fewer transaction volumes in the first half of 2019. As a result, only 2,025 units are available for rent. This might force developers into en bloc sales, especially if the “trend of low GLS supply persists,” said the Vice President of Jefferies.
The leasing trend for private condo units in Singapore remains favorable. Vacancy rates of residential properties are declining as more units are rented out. There’s an annual improvement of eight per cent in rental volumes. This exceeds the growth of Singapore’s residential population of 0.8 per cent, foreign population of 1.6 per cent. It also exceeds the annual growth of the private residential stock of five per cent.
Other contributing factors include a combination of shortening of lease tenor, leasing of rooms versus homes, and less owner-occupancy.
That’s Good News for Landlords Struggling with Lower Rental Yields for a Few Years Now
Now might be a good time to start considering rental properties again. This is especially true for owners of Central Region properties, which have been hit harder with higher vacancy rates. You can find the best listings on 99.co.
Do you think rental rates will really rise? Voice your thoughts in our comments section or on our Facebook community page.
If you enjoyed this article, 99.co recommends 7 Important Clauses You Never Knew Existed and Your Property Buying Checklist to Maximise Rental Yield.
Looking for a property? Find the home of your dreams today on Singapore’s largest property portal 99.co!
About Maelyn Lagman
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
Join our social media communities!
Facebook | Instagram | TikTok | Telegram | YouTube | Twitter
Leave a comment