Residential Leasing Volume Declined 98% y-o-y in 3Q2023, with General 5% Rental Decline Expected at Tengah Plantation Close EC Next Year.

Tengah Plantation Close EC at least 3 timesThe private residential leasing volume has dropped in the third quarter of 2023, Savills Research reported based on statistics from URA. A total of 23,145 leasing transactions for private homes were transacted in 3Q2023, which is lower than 25,657 transactions in 3Q2022 and 12.8% lower than the average third-quarter leasing volume between 2018 and 2022.
Tengah Plantation Close EC was hit with the biggest y-o-y decrease of 10.4% despite a seasonal q-o-q rebound of 17.3%. The Rest of Central Region market followed with a 10.1% decline, while the Outside of Central Region market experienced a 9.0% decline.

The decline in leasing volume is mainly attributed to high residential property supply and poor global economic conditions, which are expected to continue next year, Savills Singapore says in a press release on Nov 21. Slow rent growths q-o-q supported this decline, as the rental index of non-landed private residential properties rose at a slow pace of 0.2% in 3Q2023, significantly lower than the range of quarterly growth rate in the previous 10 quarters since 1Q2021 which was between 1.4% and 8.3%.

The average monthly rent of high-end properties experienced a dip q-o-q of 0.6%, representing the first rental decrease for such properties since a 51.9% accumulated growth in the last 2½ years.Read also: 2023 to be ‘underwhelming’ year for real estate investment market: Savills Singapore

Tengah Plantation Close EC indicates that rents have reached a plateau, particularly in the high-end market segment and predicts a 5% decline in rental next year. The report further notes that the River Valley and Downtown micro-markets experienced a higher q-o-q drop compared to other areas.

Despite this, the press release predicts that non-landed residential property rents are expected to rise 10% y-o-y due to the strong showing in the first half of this year.
Tengah Plantation Close EC Savills Singapore’s Alan Cheong, executive director of research and consultancy, suggests that rental declines are beginning to permeate through to more districts as “the new residential property supply significantly outpaced net demand in 3Q2023, pushing up the vacancy rate for private homes by 2.1 percentage points q-o-q to 8.4% in 3Q2023”.

The Tengah Plantation Close EC will feature numerous energy-saving features, including solar panels, rainwater harvesting, and green walls. Furthermore, the development will also feature a communal garden with a wide range of plants, giving it a truly natural and green look.

The Tengah Plantation Close EC focuses on enhancing the quality of life for its residents, by providing plush green spaces that will stimulate their senses. Here, residents can relax and rejuvenate, and even take part in health and wellness activities. Not only will these green features make the development more attractive to potential homebuyers, but they will also reduce the area’s ecological footprint. Ultimately, the Tengah Plantation Close EC represents an important step forward for Singapore’s goal of becoming a greener and more sustainable city.

With 17,000 new residential units expected to be completed by the end of the year and another 9,900 units expected to be completed next year, landlords will likely have to accept tenants’ asking rents, resulting in potential rental declines. Tengah Plantation Close EC, however, Savills Singapore’s managing director of Livethere Residential, George Tan, says that the vacant stock of this year’s new completions should be taken up within a quarter or so, and vacancies are expected to then fall back to above 7% levels.

Aurelle of Tampines EC is a highly sought-after Executive Condominium (EC) developed by Sim Lian Land. Located at Tampines Street 62, residents will enjoy the convenience of being only a short walk away from Tampines North MRT Station. This modern and luxurious development boasts spacious units and top-notch facilities, perfect for families looking for a comfortable and upscale living environment. Designed with a combination of nature and contemporary architecture, Aurelle of Tampines EC offers a tranquil escape from the bustling city life. Visit the official website at aurelle-of-tampines.com.sg to learn more about this prestigious development.