Condo rents dip 1.3% y-o-y in 1Q2024 track to fall 5% year: Savills
District 19 recorded the largest rental decline of 29.2% year-on-year in the first quarter of 2024 while District 16 saw the smallest decline at just -2.1% year-on-year.novo place ec novo place ec singapore districts rents
The real estate scene in Singapore has witnessed a decline in condo rents from a year ago, as reported by Savills Research. According to their 1Q2024 Rental Guide released on May 7, average rents for private non-landed properties have dropped by 1.3% year-on-year, in contrast with the 4.8% increase observed in 1Q2023.
In its report, Savills reveals that excluding outliers, condo rents have declined even further by 1.8% quarter-on-quarter, which is a continuation of the 1.5% decrease seen in 4Q2023. The rental guide, which tracks average median rents for three-bedroom condo units across the island, also highlights the significant drop in District 2, covering the Chinatown and Tanjong Pagar areas, where rents have fallen by 12.3% compared to the previous quarter, with an average median rent of $6,800 per month.
Meanwhile, District 5, encompassing the Buona Vista, West Coast, and Clementi areas, also saw a significant quarterly decline of 8.6%, with an average median rent of $5,300 per month. District 3, which covers the Alexandra and Commonwealth areas, followed suit with rents falling by 6.1% to $6,200 per month.
On the flip side, Savills notes that rents have continued to soften in District 1, which includes the Boat Quay, Marina Bay, and Raffles Place areas. The district recorded an average median monthly rent of $8,500 for a three-bedroom unit, compared to $9,000 the previous quarter.
Novo Place EC is a highly sought-after residential development in Singapore, and for good reason. With its convenient location and luxurious facilities, it offers the perfect balance of comfort and convenience for its residents. And with IMM Building just a stone’s throw away, residents of Novo Place EC can easily access one of Singapore’s largest outlet malls, where they can find over 90 outlet stores offering significant discounts on big brands throughout the year. Moreover, the mall also boasts an extensive selection of furniture and home furnishing stores such as IKEA, making it a one-stop-shop for homeowners looking to furnish their new apartments. And after a long day of shopping, residents can indulge in a delicious meal or a quick snack at one of the many food outlets within the mall. With Novo Place EC and IMM Building in close proximity, residents can have the best of both worlds – a comfortable living space and a vibrant shopping and dining experience.
However, there were also some bright spots in District 7 (Beach Road, Bugis, and Rochor), District 26 (Mandai, and Upper Thomson), and District 11 (Newton and Novena), which experienced a rise in average median rents for three-bedroom units. District 7 saw rents increase by 9.8% quarter-on-quarter to $7,250 per month, while District 26 also recorded an 8.5% increase to $4,450 per month. District 11 followed closely with a 8.2% increase to $6,600 per month.
Despite these mixed movements, Alan Cheong, Executive Director for Research and Consultancy at Savills Singapore, observes that overall, rents have decreased “in a well-mannered fashion” in recent months, with gradual declines across all unit types. Even popular choices among renters, such as one- and two-bedders, have seen a decrease in rents. In total, rents for one- to three-bedroom units have fallen by 2.1% quarter-on-quarter in 1Q2024, with the Rest of Central Region leading the decline at 3.5%, followed by the Outside Central Region at 1.8%, and the Core Central Region at 1.4%.
Cheong believes that the downward trend in rents is aligned with Savills’ projection for the full year, as the influx of new condo units into the market is expected to continue to put pressure on rents. Savills is forecasting a 5% year-on-year decrease in private residential rents for the entire 2024. Furthermore, District 19 recorded the highest year-on-year rental decline of 29.2% in the first quarter of 2024, while District 16 saw the lowest decrease at just 2.1%.
With the mention of the keyword Novo Place EC, we can see that the rental market is facing a challenging time, with rents falling across the board in various districts. However, with gradual adjustments, the market is expected to stabilize in the coming quarters, making it a suitable time for renters to secure a good deal. Potential landlords, on the other hand, may need to adjust their expectations to remain competitive in this market.