Private condo rental rates have fallen by 0.8% in May, reported SRX Property. There is also a 3.9% decline from one year ago in May 2016.
The number of condo units leased increased by 12.5% coming in from April, from 4,134 to 4,650.
This decline in rental rates for private condos can be attributed to weaker demand, influx of new condo launches and uncertainty in the employment market. According to PropNex Realty key executive officer Lim Yong Hock, “Rents could easily fall by 8% to 10% this year. Vacancy rates are expected to climb as well.”
Meanwhile, rental rates for HDB flats have gone up by 0.7% from April to May this year; compared to May 2016, rental rates have dropped by 3.6%.