The Urban Redevelopment Authority (URA) of Singapore analysed rents in developments with at least 100 units and that have 10 or more leases each in the first and second quarters this year. Of the 124 projects in this category, about 64 percent saw rents drop between the two quarters. Rents are taking a hit mainly due to the stock of homes available for rental has risen, property consultants said.
Research done by property firm Colliers International showed that monthly rents of luxury apartments fell 3 percent in the first six months of 2008: a 1,000 sq ft apartment would fetch $6,730 in June 2008, down from $6,930 in December 2007.
Ms Tay Huey Ting, director of research and advisory Colliers International, however, comments that luxury rents are unlikely to fall by more than another 20 percent in the second half, as Singapore remains attractive to expats.
Mr Colin Tan, head of research and consultancy at Chesterton International, agrees, adding, “at the other end of the rental marker, far-flung locations such as Changi and Pasir Ris, the declines are expected to be more pronounced as they will face the twin problems of weak demand and declining rentals.
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