Private home rents dips 1.0% in 4Q2016

By Tan Chee Yuen / The Edge Property | January 26, 2017 2:47 PM SGT
Rents of private homes dipped 1.0% in 4Q2016, compared to the 1.2% fall in 3Q2016. On a y-o-y basis, rents fell 4% from 4Q2015, based on data released by the URA today.
Rents homes in the Core Central Region (CCR) slipped a 0.4% in 4Q2016, compared to the 1.4% decline in 3Q2016. Rents in the Rest of Central Region (RCR) and Outside Central Region (OCR) fell 0.1% and 2.0% in 4Q2016 respectively, compared to 0.6% and 2.4% decline in the previous quarter. In 2016, rents of private homes fell 4.0%, improved from 4.6% decline in 2015.
“The decline in rents of non-landed properties was not surprising due to the large number of completions in 2016,” says Lee Nai Jia, head of South-east Asia research at Edmund Tie and Co. “The leasing market is likely to be more competitive in 2017 as demand from expatriate workers are likely to ease given the restructuring economy,” he adds.
As at 4Q2016, vacancy rates of completed private residential properties in CCR, RCR and OCR stood at 9.6%, 9.6% and 7.1% respectively.
Private home prices fell 0.5% q-o-q in 4Q2016, compared to the 1.5% in 3Q2016. The decline of prices moderated from 3.7% in 2015, to 3.1% in 2016. Prices have fallen 11.3% from the peak in 3Q2013 to 2Q2016, over 13 consecutive quarters of decline.
Prices of private non-landed homes slipped 0.8% in 4Q2016, compared to the 1.2% fall in 3Q2016. Home prices in CCR bucked the trend by inching up 0.1% in 4Q2016, compared to a 1.9% dip in 3Q2016. In the RCR segment, prices fell further by 2.0% in 4Q2016 from the 1.0% decrease in the previous quarter. Meanwhile, decline of home prices in the OCR narrowed to 0.6%, after falling 1.0% in 3Q2016.
There were 1,944 resale transactions in 4Q2016, compared to 2,477 in 3Q2016. On a y-o-y basis, the number of resale transactions rose 33% from 1,464 in 4Q2015.The total resale transactions in 2016 were 7,901, compared to 6,160 resale transaction in 2015.
Developers sold 2,316 private residential units (excluding ECs) in 4Q2016, compared to the 1,981 units in 3Q2016. A sum of 2,944 uncompleted private residential units were launched for sale in 4Q2016, compared to 1,609 units in the previous quarter.
Meanwhile, the number of applications approved for subletting of HDB flats fell by 1.0%, from 10,789 cases in 3Q2016 to 10,678 cases in 4Q2016. However, a total...