Private home rents are unchanged in Q3 after a long decline, which is boostered by the landed property segment which helped to boost rental rates after a decline of 15 quarters.
However, vacancy rates for private homes rose islandwide, with more completed homes on the markets.
Rents stayed unchanged in Q3, after an overall 0.2 per cent quarter-on-quarter slide in the second quarter. Rents stayed unchanged with the increase of 0.6 per cent growth among landed properties.
However, rents in condominium and private apartments fell 0.1 per cent, following a 0.2 per cent decline from the second quarter.
Some owners have also withdrawn their units from the leasing market, following the turnaround of prices in the sales market.
This reduces the supply for rental and have a positive impact on rents. However, the decrease in rents are not spread evenly around all regions.
Rentals in the core central region dropped 0.8 per cent in the third quarter, after increasing a 0.1 per cent in Q2.
Rents outside the central region dropped by 0.3 per cent, after a decline in the second quarter of 0.6 per cent.
Rents for non-landed private homes in the rest of the central region rose 0.9 per cent compared to a drop of 0.4 per cent in Q2.
A decrease in the Singapore’s non-resident population, the main drivers of the leasing demand for both public and private housing, could further weaken the rental market.
The private home vacancy rate rose to 8.4 per cent from 8.1 per cent in Q2.
This is still not near the vacancies of 9.7 per cent in 1998 during the Asian financial crisis.
Unsold inventories and vacancies remained lower than a year ago. The number of completed private homes increased by 3,974 units in Q3, compared to 3,806 units in the previous quarters.