SINGAPORE: In the second quarter of 2024, private home rentals decreased by 0.8%, marking the third consecutive quarter of declines.
According to data released by the Urban Redevelopment Authority (URA) on Friday (Jul 26), this comes after a 1.9 percent decline in the previous quarter and a 2.1 percent fall in the fourth quarter of 2023.
Compared to the robust growth of 10.2 per cent in the first half of 2023 and 11.2 per cent for the same period in 2022, overall rents fell by 2.7% during the first half of 2024.
Rents have decreased due to an increase in the supply of private properties, as nearly 30,000 new homes were built in 2022 and 2023,” stated Christine Sun, chief researcher and strategist at OrangeTee Group. She mentioned that many residents who were renting have moved into permanent residences.
Furthermore, as some multinational corporations, tech companies, start-ups, and financial institutions have been restructuring over the past two years, the departure of some expatriates has made the market challenges even more acute,” she continued.
However, given the slower rate of decline in URA’s rental index, real estate analysts pointed out that the rental market might be turning a corner. A stronger job market could lead to more demand in the coming months,” stated Mr. Lee Sze Teck, senior director of data analytics at Huttons.
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