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Flexibility Key For Landlords Amid Weakening Residential Rental Market
This article was originally on GET.com at: Flexibility Key For Landlords Amid Weakening Residential Rental Market
For Singapore landlords renting out their private condos, it's time to adopt some flexibility when it comes to negotiating your rental contracts as the residential rental market weakens.
Non-landed private rental prices decreased by 0.6% in May 2016 compared to the previous month, and dropped by 5.2% from May 2015, according to SRX Research.
The overall median gross rental yield also decreased by approximately 3.2% in May 2016, from 3.7% a year ago, according to a Savills study.
In a tenant's market, landlords will need to look at ways to make their properties more attractive. One method is to allow for a shorter lease term of one year instead of two years, since tenants have the expectations that rents would go lower.
Landlords also need to be more realistic in asking prices given the increase in supply of private housing units this year.
For example, centrally located properties in areas like District 2 (covering Tanjong Pagar, Chinatown and Raffles Place) commands a higher rental yield given the stronger rental demand and lack of residential supply.
Areas in District 20 (Ang Mo Kio and Bishan) and District 8 (Little India and Farrer Park), on the other hand the rental prices have fallen by 25% and 22% respectively over the past two years.
Despite a decrease in rental prices, rental volume for private condos increased by 5.8% to 4,400 units in May 2016 from 4,158 units in the previous month, based on SRX Property's flash figures. This could possibly be attributed to tenants interest in renting smaller units that are cheaper, hence contributing to the overall decrease.
Keen To Rent Your Property?
If you own a private condo and would like to rent it out, here are 5 things you need to know about renting your property in Singapore.
If you're looking for a place to rent, you don't have to limit yourself to a private condo since you can now rent a condo for almost the price of an HDB.
For those interested to buy a property, here are 4 important things you should consider before you go ahead and buy one.
Have you been looking for a home loan that suits you? It pays to use a home loan comparison site like GET.com to help you compare DBS home loans, UOB home loans or OCBC home loans, amongst a total of 14 financial institutions in Singapore in just seconds.
Or if you've been considering to refinance your home loan, then you should check out these 4 things you can consider when comparing home loans.
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