Could the market be turning on its heels, headed up the charts? Vacancy rates have been falling as the number of rental properties finding tenants have been on the rise.
Property analysts are however not positive about the numbers. They have attributed it to statistics more than the actual market sentiment. Rental rates have instead fallen 1.7 per cent in Q1, which could show that the number of new occupant-ready properties entering the market last and this year may have shaven a chunk off the property rental pie. From now to 2018, almost 67,300 new units will flood the market, giving a possible indication of how the market will react in the months or even years to come.
Location nevertheless still has the ability to bring rental prices up a significant notch. At the Astoria Park condominium near Kembangan MRT station for example, rents have risen for the first 3 months of the year. Older condominiums may have a battle at hand as newer properties offer fresher facilities; though the proximity to amenities, transport nodes and schools may put the former right back on the tenants’ maps. Landlords of older developments may also have an upper hand in their option of coming down on prices since they may have purchased the units at a lower cost.
As more new residential properties come into the fold in the months ahead, the symbiotic relationship between rental and sale prices could become more obvious and things may seem a lot clearer then.