The report indicated that non-landed private residential rents have already grown by 7% so far, with upscale private residential rents in the Core Central Region (CCR) rising by 6%, and mid-tier and mass-market private residential rents in the Rest of Central Region (RCR) and Outside Central Region (OCR) both experiencing an 8% increase.
However, data from the third quarter showed a 1% decline in non-landed private residential rents on a quarter-on-quarter basis. Specifically, rents in the Core Central Region saw a 1% drop, while rents in the Rest of Central Region and Outside Central Region remained flat compared to the previous quarter.
The report also highlighted that in the third quarter of this year, the highest average monthly rent for a three-bedroom unit was in the first postal district, with units in River Valley, Boat Quay, and Marina averaging at $9500.
Following this was the fourth postal district of Harbourfront and Telok Blangah, with an average monthly rent of $8825. Ranking third was the ninth postal district of Orchard and River Valley, with an average monthly rent of $8000.
Despite some weakness in rents for certain locations and bedroom types and an increase in the duration of vacant units, the report emphasized that the leasing market for local non-landed private residential properties remains resilient.
The completion of nearly 18,000 units this year has alleviated the tight market conditions seen last year, giving tenants more options. Additionally, the challenging business environment and the expansion of manufacturing facilities and regional offices by multinational corporations in the ASEAN region have also prompted foreign professionals to choose to relocate to these areas.
However, the report expressed caution for the first half of next year, with expectations that local non-landed private residential rents are unlikely to decrease significantly. The strong uptrend from last year to the first quarter of this year has provided landlords with the impetus to demand higher rents. Non-landed private residential rents are projected to decrease by 3% next year compared to this year.
