Residential Rents To Face Downward Pressure In The Coming Months
Residential rents in Singapore are projected to persist encountering down tension over the upcoming days, stated Singapore Business Review pointed out JLL.
This comes as leasing interest will likely weaken given that the continuous economic stagnation and border control actions are decreasing the pool of minimal lessees within the Landmark Condo Showflat market.
JLL noted that for the first time in 13 years, net absorption of nonpublic residential properties turned negative in the second quarter, indicating weaker renting demand as a result of worsening trade conditions affecting the wages and also employment of expatriates.
In reduction, low completion degrees in addition to some withdrawals resulted in unfavorable net brand-new supply, which maintained openings amount unmodified at 5.4% in Q2.
With this, the residential rental index dropped 1.2% in Q2, turning around Q1’s 1.1% boost. Leas for landed homes decreased by -2.3% throughout the quarter under evaluation, while non-landed rental index softened by 1.1%.
As developers launched no new project, the quarter only saw 1,852 new nonpublic homes launched, down 11.5% quarter-on-quarter and 26% year-on-year. Of those launched, 1,713 units were moved, which represents a 20.3% quarter-on-quarter decline. But while brand-new house sales quantity slowed down in April as well as May, it posted a rebound in June.
URA disclosed that the number of unsold homes stood at 28,143 in Q2, down 4.3% quarter-on-quarter as well as 25.2% year-on-year. JLL said this marks the fifth successive quarter of dropping unsold inventory on the back of sustained purchases within the main market.
” The continued easing of unsold supply is a healthy and balanced advancement as excess is being minimized. It is still of concern to property developers who are dealing with obstacles in pushing sales in the middle of mindful demand as well as market uncertainties,”