Thursday 12 March 2015

Headline: Rents continued to slip, volume declined in February 2015 - SRX

posted on 11 Mar 2015  
  
SRX Property
Headline: Rents continued to slip, volume declined in February 2015.
A. Non-Landed Private Residential Rental Market
1. Private rents continued to fall. According to the SRX Property Price Index for Non-landed Private Residential Rentals, rents posted a drop of 0.8% in February 2015 compared to January 2015. Non-landed Private Residential units in CCR and RCR saw decreases in rents of 1.2% and 1.5% respectively. The rents in OCR stayed unchanged from January.

According to the SRX Property Price Index for Non-landed Private Rentals:
· Rents have not been increasing since Feb 2014.
· Year-on-year, rents in February 2015 are down 6.2% from February 2014.
· Rents in February are 10.5% down compared with its peak in January 2013.
· Rents change in January has been revised from a 0.2% increase to unchanged.

2. Rental volume declined. According to the SRX Property, an estimated 2,586 Non-landed Private Residential units were rented in February 2015, a 25.8% decrease from 3,487 units rented in January 2015.
· Year-on-year, rental volume in February 2015 is 5.9% lower compared to 2,748 units rented in February 2014.

B. HDB Rental Market
1. HDB rents continued to fall. According to the SRX Property Price Index for HDB Rentals, rents posted a decline of 0.3% in February compared to January. HDB 3 and 4-Room flats posted declines in rents of 0.8% and 0.6% respectively. 5 Room and Executive flats on the other hand saw a pick-up in rents by 0.7% and 0.5% respectively.

According to the SRX Property Price Index for HDB Rentals:
· Year-on-year, rents in February 2015 are down 3.0% from February 2014.
· Rents in February are 5.5% down compared with its peak in August 2013.
· Rents change in January has been revised from a 0.5% decrease to a 0.6% decrease.
According to the SRX Property Price Sub-Indices for HDB Rentals in Mature and Non-mature Estates:
· Rents dropped in both Mature and Non-mature Estates in February 2015.
· Year-on-year, rents of Non-mature Estates in February 2015 have dropped 3.8% from February 2014.
· Year-on-year, rents of Mature Estates in February 2015 have dropped 2.3% from February 2014.

2. HDB rental volume declined. According to the SRX Property, an estimated 1,371 HDB flats were rented in February 2015, a 25.7% decrease from 1,846 units rented in January 2015.

· Year-on-year, rental volume in February 2015 is 6.5% lower compared to 1,467 units rented in February 2014.
Source: SRX (11 Mar 2015)