Working in Singapore, rent and food are very important things for migrant workers.
According to the latest data from 99.co and SRX, Singapore's non-landed private homes finally turned from rising to falling in September after two consecutive months of growth, falling by 0.2% month-on-month, but the overall trend of rents still tends to be stable.
The fall in rents in the rental market is a wonderful thing for many migrant workers.
Some netizens said that the rent in Singapore has fallen, so the majority of the cost of studying abroad has fallen. Previously, many landlords were still picky, and rents in many places dropped by an average of 10%.
Singapore in September
Apartment rents are falling
In September, apartment rents in Singapore fell?
According to the latest data from 99.co and SRX, in the Singapore apartment rental market, rents fell by 0.2% month-on-month in September.
However, rents are not declining in all areas. Rents in the Central Region (CCR) and the rest of the Central Region (RCR) rose by 0.5% and 0.2% respectively in September, with demand for central and peri-city properties persistent.
(Photo: 99.co)
In contrast, rents outside the Central Region (OCR) fell by a more pronounced 1.1%, which may reflect increased competition in suburbs where new development is concentrated.
Compared to the previous year, overall apartment rents have fallen by 3.6% in September this year. All regions saw varying degrees of decline, with CCR rents down 4.7%, RCR down 3.2% and OCR down 3.3%. These data suggest that the apartment rental market has cooled across the board.
99.co Chief Data Officer Ha Jin pointed out that the drop in rents is also related to tenants' wait-and-see, and may also be due to the large number of new private residential units completed in the second half of this year, increasing the choice of rental units and further easing the current situation of short supply in the market.
This also led to a continued decline in apartment rental data in September, with Singapore rental volume estimated at 6,172 units in September, down 17.2% from August rentals, according to the 99.co report.
(Photo: 99.co)
However, compared to September last year, leasing volumes still rose, with an increase of 7.7%. From this point of view, the current demand for rental housing in Singapore remains flexible. Compared with the data in September of the past five years, it has been lower than the average of 5%, indicating that the rental market has entered a quiet period.
In terms of distribution, 34.5% of the entire apartment rental market comes from OCR, 33.4% from RCR, and 32.1% from CCR, and the distribution of tripartite leasing transactions is relatively even.
Regarding the changes in the rental market, Sun Yan, chief research and strategy director of Orange Yi Group, said: "If you compare the rents from March to September this year. Rents for private homes have remained unchanged, suggesting that the market has largely stabilised and rents have bottomed out. ”
99.co Chief Data Officer, Ha Jin, said the next few months will determine whether the rental trend is a critical period for a temporary or sustained recovery.
While apartment rents are falling month-on-month, what is the rental market like for HDB flats?
Apartment rents are falling,
And HDB rents are rising?
While apartment rents have fallen month-on-month, HDB rents have continued to rise!
In September, the HDB rental market also experienced a similar state in the apartment rental market. HDB flat rents rose by 0.1% in September compared to August, but there was a difference in the rise and fall, with rents for mature flats falling by 0.1% and rents for non-mature flats rising by 0.3%.
Compared to September last year, HDB rents rose by 3.7%, which is the overall increase in the HDB market. Although the increase is not as fierce as in the previous two years, the demand for public rental housing is still rising.
Among them, the increase in rents for different types of houses is also different, with the rents of three-bedroom, four-bedroom and executive rooms rising by 0.3%, 0.2% and 0.2% respectively. However, the rent of the five-bedroom room type decreased slightly to 0.2%.
Regarding the increase in HDB rents, Halden Group CEO Yip Yun Meng said that more new private residential projects will be launched in October and November in the second half of the year, and some buyers will sell their houses first and then choose to rent in order to avoid paying additional buyer's stamp duty (ABSD), which will help support the rental market of HDB flats, which may increase by 2% to 3% this year.
"The decrease in the number of HDB flats that have reached the minimum age of residence has led to a shortage of HDB rental flats, which in turn has driven up rents. We expect this to continue for some time. ”
Compared to the previous year, rents increased across all apartment types, with three-room apartments up 3.7 percent, four-room apartments up 4.2 percent and five-room apartments up 2 percent, with executive apartments seeing the largest increase of 7 percent.
Even though the rental market has stabilized, executive apartments that can bring more space are still the first choice for many people.
However, rents for HDB flats are rising, while the number of rentals is declining.
HDB rental volume was estimated at 2,314 units in September, down 11.8% month-on-month from 2,625 units in August. This is a 17.3% year-on-year drop from September last year, further indicating that the HDB rental market has cooled, even below the average of 11.7% over the past five years.
As for the decline in the number of HDB flats, experts said that it may be due to tenants moving to newly completed apartments, and some HDB owners may upgrade to private properties, reducing the rental demand for HDB flats.
In terms of the distribution of the rental HDB market in September, 32.2% of the transactions came from three-room apartments, 38% from four-room apartments, 24.2% from five-room apartments, and 5.6% from executive apartments. Four-room apartments have always been a popular category in the rental market, probably because of the balance of rent and space.
So, does the Singapore rental market have a big impact on studying abroad?
Apartment rents are falling,
Reduced cost of studying abroad?
For many parents, when their children go to Singapore to study, the first thing to consider is - the problem of residence!
As early as the beginning of September, some Singapore netizens said that the cost of studying in Singapore has decreased, and the overall rent in Singapore has dropped by 4.5%, and experts predict that it may drop by another 9% in the second half of the year.
This is a good thing for many Chinese families who plan to prepare their children to study in Singapore. After all, it is possible to save about S$1,000 in a month's rent. Then, the cost of studying abroad for one year can be reduced a lot.
However, some netizens said that in fact, the rent has not decreased much, and the rent has risen outrageously in the first two years, by 100%, and almost by 20%.
However, compared to the rent in August, it has actually dropped a lot. Previously, rents for non-landed private homes rose 0.3% m/m in August, compared to July, with rents for all condominiums rising, including 0.2% m/m for CCR, 0.4% m/m for RCR and 0.6% m/m for OCR.
For 2 consecutive months, rental rents have been rising, and some netizens complained on social media that the three-bedroom rent has almost doubled compared with before the epidemic, which is really outrageous.
Now in September, apartment rents have finally dropped, which is also a good thing.
After all, workers also have to eat and drink, so they can't use all the money they earn every month to rent a house, right?
In particular, this is also a good thing for those who are preparing to study in Singapore in the second half of the year, after all, the rent has fallen, so the cost of studying abroad has also decreased!
If rents continue to decline, the cost of studying abroad can be significantly reduced.
According to market reports, there will be an influx of 7,000 new apartments by the end of the second half of the year, which could ease the market tension and put downward pressure on rents in the suburbs.
Once this happens, then the rental supply increases, which may lead to a further decline in rents in the rental market.