Private condo rents fell 2.2% year on year in May

, ,

Grand Dunman prices

The rental rates of private non-landed houses in Singapore saw a decrease in May, as per the report on Singapore’s rental market by Savills. Based on the data of URA the median rent for one-to-four-bedroom units decreased by 2.2% m-o-m in May which reversed from an increase of 2.4% increase recorded in April.

Grand Dunman prices range of $2.5 million, which has become a sweet spot for homebuyers and investors.

“For those who rent in Singapore there is a sense of relief at hand as rental rates in many districts begin to fall,” says Alan Cheong the Executive Director at Savills Research & Consultancy. Cheong says that the lowering of rents was anticipated due to the increase in new supply by 2023. Moreover, the economic downturn forced companies to cut budgets and cut down on rental costs for expatriate employees or cut back on employees.

Marcus Loo, CEO of Savills Singapore, adds that the rising rents come in a period when economic headwinds are placing the tenants off their budgets. “This adjustment to rents lets the market reset towards a better base to benefit the long-term health for the economic system,” the CEO says.

While rents seem to be easing but Cheong believes that the decline in rental rates remains modest, and the yields for landlords are healthy.

Savills report shows the fact that for condos with three bedrooms rents decreased 3.2% m-o-m in May. District 4 (which includes all of the Keppel, Mount Faber, Sentosa and Telok Blangah areas) was the area with most median monthly rent for three-bedroom units at $9300. District 1 (Boat Quay, Chinatown, Havelock Road, Marina Square, Raffles Place and Suntec City) was the second highest submarket, with a median rent of $8,500. The next was District 9 (Cairnhill, Killiney, Leonie Hill, Orchard and Oxley) with a median monthly rental of $7,500.