PRIVATE rental prices continued to fall in October, marking the ninth consecutive monthly decline in rental prices as rents dipped 0.9 per cent month on month, according to SRX Property.
Prices have decreased 5.1 per cent since January, SRX said in its flash report on the Non-landed Private Residential Price Index for Rentals. Meanwhile, rents were down 5.3 per cent year on year in October.
Non-landed private residential units in all three sectors (Core Central Region, Rest of Central Region and Outside Central Region) experienced declines in rent of 0.7 per cent, 1.1 per cent and 1.5 per cent respectively.
"The continued drop in rents is expected; as it is currently a tenants' market. Tenants have strong bargaining power as the current supply glut and declining expat demand are pushing down rents," said ERA Real Estate.
The report also showed that rental volumes had dropped slightly as some 3,208 non-landed private residential units were rented in October. This is down 1.3 per cent from September.
However, rental volumes in October were 11.8 per cent higher year on year.
"The downtrend for private property rents has also affected the HDB rental market; in particular the demand and rents for the larger flat types," noted ERA. "The competition for tenants from suburban private property owners that are lowering their rents for family-sized units to S$2,500 to S$3,500 a month are drawing tenants away from the HDB rental market."
ERA expects this trend to continue since some 60 per cent of newly completed private residential units are in suburban areas. However, the HDB rental market will continue to experience demand from tenants with monthly rental budgets of S$2,500 or lower.