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 increased in October as demand increased following the previous round of cooling measures, with more tenants choosing HDB flats for lower rents. According to flash figures released on Wednesday by property websites 99.co and SRX, HDB rents rose at a slower 1.8% rate in October, compared to 3.3% in September, with executive unit rents rising at the fastest rate at 6.1%. The number of HDB apartments rented increased by 10.3% in October, to an expected 1,995 units, up from 1,809 in September.
Condominium rents climbed by 2.7% in October, compared to 3.3% in September, with rents growing in all three zones of Singapore: downtown, city fringes, and suburbs. However, rental volume declined 8.7 percent in October to an expected 4,355 units, down from 4,771 units in September. October marked the 22nd consecutive month of growth for condo rents and the 28th for HDB rents – the longest streak for both sectors. According to property experts, the increase in HDB rental volume indicates that more renters are foregoing condo apartments in favor of HDB flats with lower rental rates, while strong rental demand continues to drive up prices in both sectors.
Those affected by the cooling measures, according to Huttons Asia chief executive Mark Yip, are likely to have resorted to renting an interim house, which has boosted the HDB rental market. Private property owners must now wait 15 months after selling their current private property before purchasing a HDB resale apartment without receiving housing assistance, as of September 30. Previously, if they sold their private property within six months of purchasing the flat, they could buy a resale flat on the open market. “Because they want to move to a HDB flat, they went to the HDB rental market, which drove up demand and rents in October,” Mr Yip explained.
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