Weak 2016 outlook for Singapore rental pricing, even as demand holds, says ERA

RENTAL prices in the non-landed private residential sector here are expected to decline by about 5 to 8 per cent this year while rental transactions will probably hold firm, said ERA.

It added that as Housing Development Board (HDB) rents continue to be pushed down by the falling rents in the private residential sector, 2016 is forecast to record a continued decline in rental pricing, while rental demand is expected to remain resilient.

The comments come shortly after the release of flash estimates from the SRX Property Price Index on Wednesday, which indicated that rents in non-landed private residential sector have remained relatively flat in December, while public housing rents have slipped.

For non-landed private residential rentals, rents inched up 0.1 per cent in December 2015 from a month ago.

On a year-on-year basis, rents in December were down by 5.4 per cent.

But rental volume dropped 7.0 per cent month on month.

According to SRX property, about 3,093 non-landed private residential units were rented in December, down from 3,325 units rented in November.

Year on year, rental volume in December was 6.4 per cent higher.

Over on the public housing side, HDB rents slipped 0.6 per cent in December month on month.

Year on year, rents in December were down by 4 per cent.

SRX property price sub-indices for HDB rentals in mature estates experienced a 0.2 per cent decrease, while rents in non-mature estates slid one per cent in December.

SRX Property said about 1,817 HDB flats were rented in December, a 1.5 per cent rise from 1,790 units rented in November 2015.

On a year-on-year basis, HDB rental volume in December rose 8 per cent.