SINGAPORE : Property leasing transactions in Singapore hit a record high of S$24.5 million in July, based on data by the Urban Redevelopment Authority (URA).
In July, median rents for both landed and non-landed homes also hit a historical high of S$2.81 per square foot per month (psf pm) and S$3.60 psf pm respectively.
On a year-on-year basis, median rents for landed homes rose 2 per cent, while median rents for non-landed homes rose 7 per cent.
Meanwhile, leasing volume for both non-landed and landed homes rose 11 per cent on-month to 4,717 leases in July 2012.
This reflects strong, prevailing demand for landed and non-landed homes.
On a year-on-year basis however, total leasing volume fell by 0.7 per cent, closely matching last year's figures.
Property consultancy Savills Research said July is traditionally a seasonal peak for the rental market, so leasing transactions are expected to decline thereafter.
However, they added that when measured on a year-to-year basis, leasing transactions would at least hold firm or even sporadically rise for a month or two.
Savills is also confident that rents on per square foot basis will increase, as new incomers with constrained rental budgets move towards smaller format homes, or landed properties with a lower absolute quantum.
The dire eurozone situation is also likely to keep the number of new leases high and even exceed last year's numbers.
However, rental quantum payable is likely to fall after the bulk of small format homes sold from 2010 onwards is completed.
According to Savills, this bulk of small format homes has the effect of keeping rental indices up.
They suggest that once these are completed from 2013, coupled with a stagnating eurozone situation, rents may see an inflexion point.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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