Condo prices set to increase but slowly, analyst says
This is due to fresh condo projects having finished construction.
Amidst the expected increase of taxes and interest rates, condo prices are bound to increase but at a slower rate, said OrangeTee CEO Steven Tan.
“Rents continued to climb as landlords may have upped rental prices in line with expected interest rate hikes and growing inflation. With an overall tight housing situation, renters may have no choice but to accept the increase in rents,” said Tan.
He said more condos will finish construction in 2023 will make the increase slower. It will offset the rental prices, which will continually increase stemming from landlord’s hurt by the GST, property tax, and interest rates.
The recent cooling measures introduced in September was the reason behind private property owners choosing rentals, Huttons CEO Mark Yip said.
“Since their intention is to move to a HDB flat, they have turned to the HDB rental market and pushed up demand and rents in October,” said Yip.
Yip also mentioned that leasing activities are still going at a brisk pace in October as multiple tenants go out for a viewing.
He also said the landlord’s market will likely continue in 2022, with rents seen to go up to 5% for the last two months of 2022.
“The strong run-up in rents is likely to be given another lift in 2023 in the wake of cooling measures,” said Yip.
Recent comments came after the HDB rents and condo rents figures were released. Data from 99.co and SRX revealed that rents climbed in both the mature and non-mature estates, and across all room types except 3 Room where rents declined by 1.0% MoM.