Business

Fall in rents, rental volume of private flats

Rents of private non-landed homes in Singapore dropped 0.4 per cent last month compared with July, while rental volume fell by 10.4 per cent, going by flash estimates from SRX Property out yesterday.

The data suggests the private rental market has not found a bottom and weakness may persist till next year.

Year-on-year, rents in August were down by 2.5 per cent from the same period last year. Rents softened across all areas, falling 3.5 per cent in the city centre, 2.3 per cent in the city fringe and 2.1 per cent in the suburbs.

Against the January 2013 peak, rents of private homes were down 19.2 per cent last month. To date this year, they are down 0.4 per cent.

Dr Lee Nai Jia, head of research at property consulting firm Edmund Tie & Company, said overall rents are likely to be stable, although rents in some districts that saw new homes being completed will remain weak.

Last month also saw a drop in the number of private units rented out - to 4,271 from 4,766 in July.

Dr Lee said the fall in rental volume was likely to be in line with international schools' academic calendar.

"Most of them start their term in August, hence most expatriates will settle down in their new homes a month before school starts," he said. - THE STRAITS TIMES

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