Condo rents up 1.1% MoM in November
HDB rents also increased by 0.8%.
A report released by 99.co and SRX reported that November 2021 rents were up 1.1% on a month-on-month (MoM) basis.
Year-on-year (YoY), rents increased by 19%. This also encompassed rents from the different regions, with Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), having rent increases of 10.7%, 9.1%, and 10.1%, respectively.
Volumes on the market also increased by 1.7% MoM, with an estimated 4,696, units being rented in November 2021. YoY, rental volumes were up 1.8%, with the number being higher than the five-year average volume for the month of November.
39.6% of the total volume were in OCR, whilst 30.7% and 29.7% were from RCR and CCR, respectively.
Meanwhile, the HDB rental market saw an increase by 0.8% MoM. Mature and non-mature estates rents increased by 1.2% and 0.4%, respectively. 3 room (0.4%), 4 room (0.6%), 5 room (1.4%), and executive rents (0.7%) also followed this growth trend.
Overall rents saw a YoY increase of 9.2%. Mature and non-mature estates also jumped by 9.1% and 9.3%, respectively.
HDB volumes increased by 2.6% MoM, with around 1,792 rents being rented in November. This is an increase compared to the 1,746 in October 2021.
When broken down by room types, the report found that 36.6% of the total volumes are from 4 room; 35% from 3 room; 21.9% from 5 room; and 6.4% from executive.
OrangeTee’s Christina Sun, attributes this performance to the easing of borders and the Vaccinated Travel Lane.
“Currently, our VTL covers more than 20 countries which contribute about 60 per cent of our total daily air travel arrivals before the pandemic. Although border rules were tightened after the emergence of the Covid-19 variant Omicron, the overall increased connectivity with the various countries still benefited the rental market. As such, leasing volume rose for two consecutive months while rents continue to climb last month.”
According to Sun, rent is also expected to increase at a faster pace next year, barring new developments from the Omicron variant.