Photo from Savills.

Private residential leasing volume down 9.8% YoY in Q3

A total of 23,145 private homes were leased during the period.

Singapore saw a 9.8% year-on-year (YoY) decline in private residential leasing volume in the third quarter despite a season rebound of 17% compared to the previous quarter, according to Savills.

Citing data from the Urban Redevelopment Authority, Savills said there were 23,145 private homes leased during the period compared to the 25,657 in the same period last year as “heightened economic uncertainties, a weaker labour market and deteriorating business sentiment continue to exert pressure on the leasing market.”

“Closer examination of the leasing data shows that rental declines are beginning to permeate through to more districts,” said Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore.

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By segment, the Core Central Region reported the biggest decline of 10.4% YoY, followed by the rest of the Central Region with 10.1% and the Outside Central Region with 9%.

Meanwhile, the rental index of non-landed private residential properties was up by 0.2% during the period, much slower than the 1.4% to 8.3% growth range during the previous 10 quarters.

Non-landed rents are seen to register a 10% YoY growth this year, following a strong performance in the first half.

The average monthly rent of high-end non-landed residential properties monitored by Savills was down by 0.6% quarter-on-quarter to $6.16 per square foot per month.

Cheong said Savills expects a general rental decline of around 5% for 2024 due to the supply as 17,000 new units will be completed this year and another 9,000 units by next year. The sector will also be affected by external economic challenges.

“With economic headwinds blowing in Europe and Asia, most multinational companies will be extremely cost-conscious, and this will cascade down to the number of foreign workers they may wish to quarter in Singapore,” he said.

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