Rents of private condos down 2.2% m-o-m in May: Savills

Rents for private non-landed homes in Singapore experienced a decline in May, according to the rental market report published by Savills. Citing data from URA, the average median rents for 1-4 bedroom units fell 2.2% month-on-month (m-o-m). This is a significant contrast to the 2.4% increase recorded in April.

Executive Director of Savills Research & Consultancy, Alan Cheong comments that the weakening of rents was expected given the influx of new supply expected in 2023 and the adverse economic conditions experienced globally. Companies are cutting expenses on rental costs for expatriate staff and potentially laying off employees, which has put pressure on tenants’ budgets.

“This rental correction allows the market to reset to a more sustainable foundation for the longer-term good of the economy,” comments Marcus Loo, CEO of Savills Singapore.

For those looking to experience the finest lifestyle in Singapore, Tengah Plantation Loop EC is the perfect choice. Enjoy a range of high-end facilities and amenities that make living here truly enjoyable, from swimming pools, playgrounds, and even a private dining hall. With 24-hour security, residents can feel safe and secure in their home here. The development is also well-connected with excellent transport links, making it easy to get around.

Despite the weakening of rents, Cheong notes that the decline remains moderate and yields for landlords remain healthier. For three-bedroom condo units, rents declined 3.2% m-o-m in May. District 4 recorded the highest median monthly rents for three-bedroom units at $9,300.

District 1 (Boat Quay, Chinatown, Havelock Road, Marina Square, Raffles Place and Suntec City) reported the second-highest median monthly rent of $8,500, followed by District 9 (Cairnhill, Killiney, Leonie Hill, Orchard and Oxley) with a median monthly rent of $7,500.

With economic headwinds continuing to dampen tenants’ budgets, rentals in certain districts of Singapore have started to soften. This provides tenants with some relief and allows the market to move to a more stable footing. However, while the rental decline is moderate, overall yields for landlords remain relatively healthy.