Condominium rental volume continued its upward trajectory in July, surging 35.1 per cent month on month, while prices rose 0.9 per cent from June.

An estimated 8,133 units were rented in July, compared with 6,020 the month before, based on flash estimates released by property portals SRX and 99.co on Aug 20.

Rental volume was 11.4 per cent higher year on year, and 3.8 per cent higher than the five-year average volume for the month of July. 

By region, 38.2 per cent of the total volume was in the outside central region (OCR), 33.4 per cent in the rest of central region (RCR), and 28.4 per cent in the core central region (CCR).

Condo rents were up 0.9 per cent in July. Prices increased 1.4 per cent in the RCR, 1.1 per cent in the OCR and 0.1 per cent in the CCR.

However, year on year, overall rents decreased 5 per cent from July 2023. By region, prices were down 6.3 per cent in the CCR, and 4.4 per cent in both the OCR and RCR.

Mr Luqman Hakim, chief data and analytics officer at 99.co, said condo rentals could be seen as “more affordable” as renters are back from the June holidays with their families.

“Condo landlords have also likely reached a price floor that they can likely afford while servicing their mortgages,” he added.

Nevertheless, Mr Luqman noted that more condo rental supply might open up during the rest of the year and prices could drop again or stabilise.

This is because foreigners holding an Employment Pass may not have their passes renewed in September under the Ministry of Manpower’s new Complementarity Assessment Framework criteria.

Ms Christine Sun, chief researcher and strategist at OrangeTee, said: “Many companies have paused hiring and are generally proceeding with caution amid geopolitical and economic uncertainties, as well as high business costs.”

Meanwhile, Housing Board flat rental prices were also up in July, rising 1.4 per cent from the previous month. Rents increased 1.5 per cent in mature estates and 1.2 per cent in non-mature estates.

By room type, prices were up 1.7 per cent for three-room flats, 1.5 per cent for executive flats, 1.2 per cent for five-room flats and 1.1 per cent for four-room flats.

Overall rents gained 4.7 per cent year on year, with mature estates up 4.9 per cent and non-mature estates up 4.4 per cent.

Year on year, three-room flats recorded the largest price increase at 5.2 per cent, followed by five-room flats at 5.1 per cent. Executive flat rents rose 4.7 per cent, while those for four-room flats rose 3.8 per cent. HDB rental volume also increased month on month in July by 13.8 per cent, with an estimated 2,993 flats rented, compared with 2,631 units in June.

The volume decreased 11.6 per cent year on year and was 5.3 per cent lower than the five-year average volume for July.

By room type, 36.9 per cent of HDB rental volume came from four-room flats, 32.8 per cent from three-room flats, 24.6 per cent from five-room flats and 5.7 per cent from executive flats. THE BUSINESS TIMES