Potentially good news for private property tenants came from The Straits Times this weekend: More than 4,000 units of new private property are expected to be completed in the second half of 2012 which will add pressure on the runaway rental prices:
Singapore's District 9 (Orchard, Cairnhill, River Valley), District 10 (Ardmore, Bukit Timah, Holland Road, Tanglin) and District 11 (Watten Estate, Novena, Thomson) traditional expat choice rental locations whose rentals were ridiculously inflated in the past 5-6 years by overly generous expat packages. The rental prices here are already feeling the pressure of shrinking housing allowances and expat packages without housing packages as well as the slowdown in the financial services industries.
Tan Kok Keong, head of research and consultancy at OrangeTee, highlights that the vacancy rate for the city centre went up from 7.8 per cent to 8.2 per cent q-o-q in Q2 2012 and this is mainly due to lack of expansion in the financial sector.
Still, experts say landlords are not expected to cut rents immediately but over the next 6 months rents will come down.
A large enough fall in high end private property rental prices would also have significant effect on the lower tier rents since many expats moved to this tiers and inflated the prices here as a spillover effect (actually the high rentals in high end properties even spill over to HDB rents).
"Landlords of newly completed upmarket homes are being warned that they may have to be prepared to accept lower rents. More than 4,000 private homes are set to be completed in the second half of the year - with many of them in the city center and city fringe regions - possibly putting further pressure on rents of posh apartments that have already been softening.
Data from property consultant CBRE shows at least 20 projects, with 4285 units, are due to be ready in the six months to December. About half are in the prime districts of 9, 10 and 11 and the central business district."
Source : New homes put pressure on high-end rentals
Singapore's District 9 (Orchard, Cairnhill, River Valley), District 10 (Ardmore, Bukit Timah, Holland Road, Tanglin) and District 11 (Watten Estate, Novena, Thomson) traditional expat choice rental locations whose rentals were ridiculously inflated in the past 5-6 years by overly generous expat packages. The rental prices here are already feeling the pressure of shrinking housing allowances and expat packages without housing packages as well as the slowdown in the financial services industries.
"The rents of high-end non landed residential properties tracked by Savills also showed a four-month consecutive fall. The average monthly rent dipped to $5.03 per sq ft per month in the second quarter, sliding 3 per cent compared with the three months before. On a year-on-year basis, prime rents fell by 8 per cent."
Source : New homes put pressure on high-end rentals
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| Marina Bay Suites at District 1 is among the projects to be completed in H2 2012./ |
Tan Kok Keong, head of research and consultancy at OrangeTee, highlights that the vacancy rate for the city centre went up from 7.8 per cent to 8.2 per cent q-o-q in Q2 2012 and this is mainly due to lack of expansion in the financial sector.
Still, experts say landlords are not expected to cut rents immediately but over the next 6 months rents will come down.
A large enough fall in high end private property rental prices would also have significant effect on the lower tier rents since many expats moved to this tiers and inflated the prices here as a spillover effect (actually the high rentals in high end properties even spill over to HDB rents).
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