Despite a softening of the private property market across the board, private condominium rental demand seemed to have remained steady, especially at popular projects in close proximity to transport and in areas with a low supply of similar new properties.
At Reflections at Keppel Bay for example, 314 more leases were signed last year as compared to 293 in 2013. But rental prices dipped 6.6 per cent as landlords may have been forced by competition to lower their asking prices. Average monthly rental here was $4.85 sf. Nearby, at the Caribbean at Keppel Bay, average monthly rent dipped by $0.43 psf from the previous $5.63 psf.
The tipping scale may now be leaning towards tenants as the influx of new properties, and in larger residential properties, many landlords may be competing against one another for the same audience. And once rental begins to dip across the island, tenants have an upper hand at bargaining for reduced rent and landlords often find themselves having to adjust prices to seal a deal.
Properties with a prime location and fewer competing units in the vicinity may still be in high demand, though City Square Residences at Kitchner Link seems to be losing its popularity with tenants despite its proximity to City Square Mall and Farrer Park MRT Station.
As more new properties reach their occupation-ready status this year, and coupled with the rising interest rates, it may be a slow but arduous journey for the market. What can property owners and landlords do to steel themselves for the year ahead?