Condo strong demand for bigger flats in landlord’s market
Condo strong demand for bigger flats in landlord’s market. Rentals for Housing Board flats and private apartments surged in October as demand increased following the last round of cooling measures, with more tenants opting for HDB flats for lower rents. According to flash numbers issued on Wednesday by property websites 99.co and SRX, HDB rents rose at a slower rate of 1.8% in October, compared to 3.3% in September, with executive unit rents climbing the fastest at 6.1%. In October, the number of HDB apartments rented increased by 10.3% to an anticipated 1,995 units, up from 1,809 in September.
Condominium rents increased by 2.7% in October, compared to 3.3% in September, with rents rising in all three regions – downtown Singapore, city fringes, and suburbs. However, rental volume fell 8.7 percent to an anticipated 4,355 units in October, down from 4,771 units in September. The 22nd consecutive month of growth for condo rents and the 28th for HDB rents – the longest streak for both sectors – occurred in October. According to property specialists, the increase in HDB rental volume indicates that more renters are foregoing condo apartments in favor of HDB flats for comparatively lower rentals, while robust rental demand continues to drive up prices in both sectors.
According to Huttons Asia chief executive Mark Yip, those affected by the cooling measures are likely to have resorted to renting an interim house, which has boosted the HDB rental market. Since September 30, private property owners must wait 15 months after selling their current private property before purchasing a HDB resale apartment without receiving housing assistance. Previously, they may buy a resale flat on the open market if they sold their private property within six months after purchasing the flat. “Because they want to move to a HDB flat, they have gone to the HDB rental market, pushing up demand and rents in October,” Mr Yip explained.
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