Condo rental prices propped up by fintech sector growth
More hiring in the fast-growing fintech services sector has been holding up the rents for condominiums and private apartments.
Rentals for HDB properties, however, slowed last month, according to flash data from real estate portal SRX.
Rents for private, non-landed homes last month increased by 0.6 per cent from the previous month, according to SRX.
Year on year, private home rents are up by 0.3 per cent last month. However, compared with their record high in January 2013, they are down by 19.6 per cent.
"We have observed more tenants working in the fintech industry lately," said Orange Tee & Tie head of research and consultancy Christine Sun. She noted that the Government has plans to grow the fintech industry and expects more global tech firms to move to Singapore.
"There could be a proliferation of tech giants, banks and even SMEs recruiting expats with specialised skills in the development of fintech services like cryptocurrency, blockchain, artificial intelligence, machine learning and mobile banking services, which may lend support to the rental market in the coming months.
BETTER DEMAND
"Private homes near some of the upcoming digital tech hubs like Buona Vista, the upcoming Punggol Digital District and downtown core may see better demand," she added.
Housing Board flat rents last month dipped 0.5 per cent from October.
Year on year, HDB rents are down by 1.3 per cent from November last year, and off by 15.8 per cent from their last peak in August 2013.
SRX revised up the monthly change in October HDB rents to a 0.4 per cent increase from a 0.3 per cent rise.
"HDB rents may continue to see weakness in the coming months due to an increase in supply of BTO (Build-to-Order) flats that are now ready to be rented out," Ms Sun said. - THE STRAITS TIMES
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