Private property rental yields likely to fall: Analysts

[CityFarmer]

I agree with the report, which tally with my observations...

Private property rental yields likely to fall: Analysts

SINGAPORE — Rental yields of private residences could take a further hit in the coming months as more foreigners opt to rent Housing and Development Board (HDB) flats and the number of condominium units on the market exceeds demand, property analysts told TODAY.

Yields are already showing signs of softening.

According to Singapore Real Estate Exchange (SRX) research conducted for TODAY, the average gross rental yield for the first 10 months of this year was around 3.8 per cent, lower than the 4.1 per cent in the same period last year. Rental volume in the private market has also taken a hit, falling for three consecutive months to 2,403 transactions in October.

On the other hand, demand for HDB flats is increasing. Official figures showed that the average quarterly rental volume this year has been around 7,600 transactions, higher than last year’s average of 6,780.
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http://www.todayonline.com/business/priv...l-analysts

[NTL]

With the increasing in the price for private, the new owners will need to rent higher to cover their costs and expenses. This will naturally push tenants towards HDB. I can't imagine people willing to pay $3000 to rent a 1bdrm unit from anyone. $3000 can easily rent a 4rm HDB at most places.

[valueinvestor]

One unit of condo in Lorong J T. K just renewed with new rental of 5.5 from 6.5K. It is on down trend.

[opmi]

With the increasing in the price for private, the new owners will need to rent higher to cover their costs and expenses. This will naturally push tenants towards HDB. I can't imagine people willing to pay $3000 to rent a 1bdrm unit from anyone. $3000 can easily rent a 4rm HDB at most places.

got people will pay $3k for pte. As long as it is the company money.

[opmi]

the question is 'will condo investors hold or let go?'
or they will just top up from their own pockets.

TDSR is a long term measure. Not expecting MAS to remove that even if prices soften and developers KP.

[NTL]

With the increasing in the price for private, the new owners will need to rent higher to cover their costs and expenses. This will naturally push tenants towards HDB. I can't imagine people willing to pay $3000 to rent a 1bdrm unit from anyone. $3000 can easily rent a 4rm HDB at most places.

got people will pay $3k for pte. As long as it is the company money.

I agree. What I mean is if it is from their own pocket. Any idea how to check if any units in TreeHouse were rented out yet?

[NTL]

the question is 'will condo investors hold or let go?'
or they will just top up from their own pockets.

TDSR is a long term measure. Not expecting MAS to remove that even if prices soften and developers KP.

Maybe at a point when their budget is straining? When interest rates go up, and the rental rate fall further, and their incomes are not going up as fast?

[Temperament]

You can see rental rates for condo as advertised are slowly down trending, everywhere. What is the Market telling you about next change of scene?

[etan]

Under URA rental contracts of pte residential properties, month of Oct does not show up anything under Tree House. Nov transactions are not punched in yet, maybe you try 1 to 2 weeks...

Any idea how to check if any units in TreeHouse were rented out yet?

[NTL]

Under URA rental contracts of pte residential properties, month of Oct does not show up anything under Tree House. Nov transactions are not punched in yet, maybe you try 1 to 2 weeks...

Any idea how to check if any units in TreeHouse were rented out yet?

Thanks. That place look like a ghost town (devt) the few times I passed by recently. Look like not only it is happening in China.

If it is bad now, it would be worse when the neighbouring devt are up...