How did the private rental market perform this year?
By EdgeProp Singapore
/ EdgeProp Singapore |
Getting an idea on popular areas to rent can help investors understand where the hot commodities are, and where there could be room for negotiation.
To get insight on consumer preference, we rounded up the most popular rental districts, the most sought-after unit types, as well as rental pricing trends in 2018.
Singapore private residential rental market report 2018
Figures are accurate as of Dec 7, 2018. Source: EdgeProp.sg, URA
Observations:
1) Prime district 9 is the top rental hotspot
Prime district 9, which covers areas such as Cairnhill, River Valley and Orchard, has emerged the most popular rental district this year.
Prime district 10 (Ardmore, Bukit Timah, Tanglin) comes in a close second, followed by districts 15 (Katong, Joo Chiat, Amber Road), 19 (Serangoon Garden, Hougang, Punggol) and 14 (Geylang, Eunos).
Based on URA data, district 9 condos with the highest rental transaction volumes during the first 11 months of 2018 are: Aspen Heights, Sophia Hills, Rivergate, OUE Twin Peaks, and UE Square.
Potential tenants looking for easy accessibility to MRT stations would likely consider Aspen Heights and UE Square, as both are just a few minutes’ walk to Fort Canning MRT station, while Sophia Hills is located about 250m from Dhoby Ghaut MRT station. Find more district 9 properties near MRT stations here.
2) 3-bedder units are the most popular rental unit types
Based on URA data, 3-bedroom units are the most commonly transacted rental unit types in 2018. Reflections at Keppel Bay, D’Leedon and Caribbean at Keppel Bay saw the highest volume of rental transactions involving 3-bedders this year. Average monthly rentals for a 3-bedroom unit at these developments range from $5,200 to $6,750.
This is closely followed by 2-bedroom rental units, the second most transacted rental unit type this year. Bayshore Park, The Sail @ Marina Bay, and Melville Park saw the highest volume of rental transactions involving 2-bedders this year. Average monthly rentals for a 2-bedroom unit at these developments range from $2,300 to $4,850.
Meanwhile, 1-bedroom rental units are the third most transacted rental unit type in 2018. The Sail @ Marina Bay, Commonwealth Towers and Icon saw the highest volume of rental transactions involving 1-bedders this year. Average monthly rentals for a 1-bedroom unit at these projects range from $1,950 to $3,410.
Read also our related In-Depth article : How do condo sizes impact rental yields?
3) Rental prices on a downtrend
Singapore rental prices have been on a downtrend, and this is seen across the five most popular districts, and across all rental unit types.
Price changes (%) in the last 5 years across different unit types
Source: Edgeprop.sg, URA
Falling foreign demand due to the tightening of policies against foreign hiring, as well as the diversification of expatriate roles are possible reasons for the pricing downtrend.
Amid the rental market downturn, let us lift your spirits with the EDGEPROP CHRISTMAS GIVEAWAY! If you’re looking to rent, you can now stand a chance to win a 1 month rental rebate when you send enquiries and transact via our listings from now till March 17. Find out more here!
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