SINGAPORE – The climb out of the pandemic-induced rut appears to be on track with rental volume for both Housing Board flats and condominium units recording another month of increases in January this year.
Condo leasings rose 11.3 per cent last month to an estimated 4,747 units, compared with 4,266 units in December last year, according to flash data from real estate portal SRX Property released on Wednesday (Feb 10).
The rental volume was 8.5 per cent higher than the five-year average volume for the month of January.
HDB rental volume climbed 14.6 per cent month on month to an estimated 1,912 flats in January, compared with 1,668 units in December.
Of the 1,912 flats, 36.6 per cent are four-room units, 34.5 per cent are three-room, 23.1 per-cent are five-room and 5.6 per cent are executive apartments.
Year on year, HDB leasings are up 8.5 per cent from January 2020.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun said it is not surprising to find rental volumes rebounding, with the Covid-19 situation improving in Singapore and progressive changes being made to re-open the country for international travel.
“More Singaporeans and permanent residents have been returning to Singapore and many require short to mid-term accommodation,” she said.
There have also been more inbound travellers like students, work pass holders and long-term visit pass holders looking for rental units in recent months, she added.
“Many of these people are looking for accommodation near their schools and workplaces, which help to prop up leasing demand for HDB resale flats and private homes in the city fringe and suburban areas.”
As more travel restrictions continue to be lifted, rental demand may continue to improve in the coming months, Ms Sun noted.
Rental volume had been increasing from November last year, after the Covid-19 pandemic saw weak hiring prospects and foreigners lose their jobs. Ms Sun had previously said the virus seemed to have reversed a decade of rampant growth in rental demand.
Overall rents for condo units in January has since increased by 1.6 per cent from December.
In January, rents in the core central region (CCR) rose by 2 per cent month on month. Rents in the outside central region (OCR) also increased by 1.7 per cent, while rents in the rest of central region (RCR) went up by 1.1 per cent.
The HDB rental market remained strong as rent increased for the seventh month straight by 0.9 per cent in January from the month before.
Rents in mature estates rose 1.4 per cent, while those in non-mature estates increased by 0.4 per cent.
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