Friday, July 06, 2012

Condo rentals up due to expats relocating

Rentals for non-landed homes across all segments grew in Q2 2012, buoyed by the seasonal increase in leasing activity during April and May, noted DTZ Research.

The trend is due to expatriates moving to Singapore after the summer holidays and the fact that they tend to confirm rental contracts between April and May.

For suburban condos, rents inched up 1.9 percent quarter-on-quarter following a 0.6 percent rise in Q1.

Likewise, prime condos saw rents climb slightly by 1.5 percent in comparison to Q1 when zero growth was observed.

“Despite global economic uncertainties which have affected expatriate relocations, rents of luxury condominiums edged upwards in the second quarter, supported by rental demand from top-end expatriates who still have the budgets to rent luxury apartments even if there are now fewer of them relocating to Singapore,” said Margaret Thean, Executive Director for Residential at DTZ.

However, cost-conscious mid-tier foreign professionals whose relocation packages do not cover housing allowances “continue to support rental demand for apartments in the range of S$3,000 to S$7,000 per month”, she added.

View the original article here

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