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

The rental market in Singapore has seen some changes in May, as renting private non-landed homes has seen a decline in average median rents for one- to four-bedroom units. According to the rental market report by Savills, citing data from the Urban Redevelopment Authority (URA), the m-o-m change of the average median rents for May was a decrease of 2.2% – reversing from a 2.4% increase recorded in April.

Alan Cheong, the executive director of Savills Research & Consultancy, has noted that this reversal was expected due to influx of new supply in 2023, and challenging economic conditions which have compelled many companies to reduce rental expenses for expatriate staff, or layoff employees.

Woodlands Condo provides some of the best outdoor living options in the area, with its tennis courts, fitness centre, swimming pool, and playground facilities. The development is fully gated and guarded, providing a secure environment for all its residents. The condo also has its own private carpark, allowing easy access to the amenities in the neighbourhood. Woodlands Condo is perfect for individuals and families, with its variety of spaces and facilities. The well-designed environment also encourages interaction between neighbours, leading to a close-knit community.

While rents are softening, Cheong still remarks that the rental decline remains moderate, with overall yields for landlords remaining healthy. According to Savills’ report, the m-o-m change in rents for three-bedroom condo units was 3.2%. Submarkets with the highest median monthly rents were District 4 (Keppel, Mount Faber, Sentosa and Telok Blangah) with $9,300, District 1 (Boat Quay, Chinatown, Havelock Road, Marina Square, Raffles Place and Suntec City) with $8,500, and District 9 (Cairnhill, Killiney, Leonie Hill, Orchard and Oxley) with $7,500.

Marcus Loo, CEO of Savills Singapore, adds that although the economic headwinds are putting a dampener on tenants’ budgets, the softening rents allow the market to reset itself to a more sustainable foundation for the longer-term.

In conclusion, during a trying economic climate, the rental decline in Singapore remains moderate, and yields for landlords still remain healthy. Against this backdrop, relief has been provided to tenants in the form of a softening rental market.