Singapore condo rents see fastest quarterly growth in over a decade

Rents increased 2.4% in Q1.

According to a recent report by RHB, Singapore’s non landed property rental rose 2.4% QoQ in 1Q21 – the fastest pace of quarterly growth in over a decade – with rent increase seen across all three market segments. 

Overall vacancy rates as a result have fallen by 60 bps to 6.4% as at end 1Q21. A similar trend is observed across the public housing segment, with SRX data showing Housing Development Board (HDB) rents rising 3.8% from the start of the year. 

RHB notes that the tightening of the rental market after a prolonged weakness comes on the back of construction delays due to COVID-19 and supply slowing down has reversed the divergence trend. 

“In our view, the increased pace of rent growth is likely to be transitionary and short term in nature as non-resident population growth being one of the key fundamental drivers of rent is likely to remain muted in the mid-term amidst tightening immigration policies. Non-resident population declined 2.1% YoY – the steepest fall in more than a decade based on Jun 2020 population data.”