Singapore Expats

Singapore
Residential Leasing Briefing Q2 2014
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"The market faces increasing challenges as more supply enters the market over the next 2 years and owners’ resistance to lower tendered rents starts to crumble."
Alan Cheong, Savills Research

Key findings:

• Singapore’s economy grew by 2.4% year-on-year (YoY) in the second quarter of 2014, slower than the 4.8% achieved in Q1.

• The labour market remained tight with the overall seasonally adjusted unemployment rate stabilizing at 2.0% in June 2014. However, employment growth was at the lowest level in four years with 22,000 new jobs in Q2.

• The rental market was active in Q2/2014 with leasing volume of private residential properties reaching a high of 15,053 transactions, translating to a quarterly increase of 12.2%.

• The rental index of private residential homes island-wide continued to slide for a straight third quarter, easing by 0.6%. Similarly, the average monthly rent of high-end condominiums tracked by Savills slipped 1.6% to S$4.77 per sq ft.

• Despite the strong leasing demand in Q2/2014, the vacancy rate of private residential units climbed to 7.1%, reflecting a total of 21,268 vacant private homes islandwide, or a significant jump of 10.3% quarter-on-quarter (QoQ).

• Leasing demand should stay resilient. Rents however, will remain soft across all segments of the market.



http://www.savills.com.sg/research/resi ... earch.aspx
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I like Savills research, and have for a decade+ following them. They report it as they see it, rather than milk+honey PR pieces for the media...

JR8 wrote:Singapore
Residential Leasing Briefing Q2 2014
------------------------------

"The market faces increasing challenges as more supply enters the market over the next 2 years and owners’ resistance to lower tendered rents starts to crumble."
Alan Cheong, Savills Research

Key findings:

• Singapore’s economy grew by 2.4% year-on-year (YoY) in the second quarter of 2014, slower than the 4.8% achieved in Q1.

• The labour market remained tight with the overall seasonally adjusted unemployment rate stabilizing at 2.0% in June 2014. However, employment growth was at the lowest level in four years with 22,000 new jobs in Q2.

• The rental market was active in Q2/2014 with leasing volume of private residential properties reaching a high of 15,053 transactions, translating to a quarterly increase of 12.2%.

• The rental index of private residential homes island-wide continued to slide for a straight third quarter, easing by 0.6%. Similarly, the average monthly rent of high-end condominiums tracked by Savills slipped 1.6% to S$4.77 per sq ft.

• Despite the strong leasing demand in Q2/2014, the vacancy rate of private residential units climbed to 7.1%, reflecting a total of 21,268 vacant private homes islandwide, or a significant jump of 10.3% quarter-on-quarter (QoQ).

• Leasing demand should stay resilient. Rents however, will remain soft across all segments of the market.



http://www.savills.com.sg/research/resi ... earch.aspx
----------------------------------------------------



I like Savills research, and have for a decade+ following them. They report it as they see it, rather than milk+honey PR pieces for the media...

well that's good, because after 8 months of looking for a decent landed house to rent within our budget, we still haven't found anything. Singapore property prices are crazy , even for awful properties. For the same money we could have a waterfront mansion on the Dubai Palm

JR8 wrote:
"The market faces increasing challenges as more supply enters the market over the next 2 years and owners’ resistance to lower tendered rents starts to crumble."
Alan Cheong, Savills Research

That was my experience having moved recently. LLs with older places were generally ready to negotiate because they basically can't rent them. Even the newer places were negotiable if they were listening to their agents.

But there are still unrealistic LLs out there, including the owner of the place I just left. I was happy to renew at the same price, he wanted more. I'm paying the same for a much newer place and he has missed out on 2 months rent so far with no tenent on the horizon. His agent did warn him but he knew better.

I'm a long-term landlord myself and familiar with the psychology of it. Plus how you have to leave your pride at the door... it's business, not personal, not ego.

This here in SG can get overlooked on 'My First Rental'[s]*, one off 'Mom+pop investments', and the 'We moved and decided to let our former home out as a pension'... type properties, especially.



* A bit like like My Little Pony, but promised to bring you simple unlimited bounteous hassle-free riches, rather than cost them.

Even if it isn't a mom&pop investment, LLs here believe that they do not need to invest in order to reap the benefit of their investment.
Or if they do, invest in their properties, it's all about design features rather making their properties up to the 2014