Condos with the most resilient rents

By
/ The Edge Property
|
October 28, 2016 10:05 AM SGT
Monthly rents for non-landed one to three-bedroom private homes in Singapore have declined 18% from 2013 to 2016 to date. Amid the downtrend, monthly rents in the Central Region have fared better compared with those in the suburban areas.
The resilience of rents in the Central Region is likely owing to the convenient commute it offers to the large concentration of office workers in the CBD. Rental homes in the city-fringe area, meanwhile, also offer a good mix of convenience and affordability to tenants with tighter budgets.
The average monthly rent for one-bedroom units in the Core Central Region (CCR) has declined 17%, or $631, from $3,738 in 2013 to $3,107 in 2016 to date. In the Rest of Central Region (RCR), the average monthly rent for similar units declined 17%, or $537, from $3,135 to $2,598, while the rent for one-bedroom units in the Outside Central Region (OCR) fell 19%, or $533, from $2,750 to $2,217 over the same period (see table).
The average monthly rent for two-bedroom units has shown greater resilience compared with that for one-bedroom units. Two-bedroom units in the CCR were the most resilient, with an 8%, or $414, decline in average monthly rent, from $4,914 in 2013 to $4,500 in 2016. The monthly rent for two-bedroom units in the RCR fell 9%, or $344, from $3,699 to $3,355, while the rent for two-bedroom units in the OCR fell 10%, or $323, from $3,195 to $2,872, over the same period.
The Edge Property has compiled a list of the five most resilient condos in each market segment in terms of monthly rent. The list comprises developments where the average monthly rent for two-bedroom units declined by the smallest percentage between 2013 and 2016 to date.
The implied gross rental yield is computed based on the average year-to-date resale price and monthly rent, as at Oct 24. Developments with fewer than five rental contracts for two-bedroom units in the reference period and fewer than three resale caveats in 2016 to date were excluded from comparison.
The list also excludes developments located in Pasir Ris, Sengkang, Bedok, Hougang and Clementi, which are suburban areas that are likely to see fierce competition for tenants owing to the large supply of newly completed condos coming on stream over the next three years.
Rents for two-bedroom units have shown greater resilience than those for one-bedroom units