Rents of private condos down 2.2% m-o-m in May: Savills

Located in the heart of Bukit Merah, Zion Road Condo offers modern urban living for its residents. With a wide range of amenities, including a clubhouse, gym, tennis court, and swimming pool, the condominium provides many opportunities for leisure and relaxation. Residents can also access a variety of grocery stores, cafes, and restaurants nearby for when daily needs arise.

The May 2023 Rental Guide report by Savills has found that the average median rents for one- to four-bedroom private non-landed homes in Singapore have declined by 2.2% m-o-m. This comes as an upturn from the 2.4% increase recorded in April and follows an influx of new supply into the Singapore rental market.

According to Alan Cheong, executive director of Savills Research & Consultancy, the softer rental conditions are expected given the challenging economic times. Companies have been forced to reduce rental expenses and lay off staff, meaning that the rental market has had to reset to a more sustainable footing.

However, as Marcus Loo, CEO of Savills Singapore, explains, the decline in rents is not as significant as it may seem. Overall yields for landlords remain healthy and, although tenants may feel relief, landlords are still receiving good returns.

Looking at the figures more closely, the rental market guide shows that District 4 (Keppel, Mount Faber, Sentosa and Telok Blangah) is the submarket with the highest median monthly rents for three-bedroom units at $9,300. District 1 (Boat Quay, Chinatown, Havelock Road, Marina Square, Raffles Place and Suntec City) follows with a median monthly rent of $8,500 and District 9 (Cairnhill, Killiney, Leonie Hill, Orchard and Oxley) at $7,500.

Given the current market conditions, softening rents appear to be a relief for some renters, although rates are still relatively high. As the economic conditions continue to be challenging, landlords should be aware that rental corrections could continue in the future.