SINGAPORE – The rental markets for Housing Board apartments and private apartments continued to rise last month despite stricter border rules imposed by some countries in response to the Omicron variant of the coronavirus.

Rents and rental volume for HDB apartments and condominium units increased last month compared to October, thanks to the introduction of more vaccinated travel lanes (VTL), according to flash data from real estate portals 99 .co and SRX released Wednesday (December). 15).

Monthly rents for condominium apartments rose 1.1% last month, with price growth seen in all areas of central Singapore, city fringes and suburbs.

Year over year, condo rents are up 10% from November of last year.

Rental volume in the condominium market increased 1.7% to approximately 4,696 units from 4,612 in October. The largest share of rented units was located in the suburbs, which accounted for 39.6% of the total rental volume.

Ms Christine Sun, senior vice president of research and analysis at real estate company OrangeTee & Tie, noted that the overall increase in connectivity with various countries continues to benefit the rental market, despite some tightening. border rules after the emergence of Omicron.

Ms. Sun added that the demand for rental housing exceeds supply in the market.

“Construction delays have slowed the completion of new homes, while the housing stock has been slashed since a number of homeowners sold their units. Some homeowners who have recently sold their apartments or condominiums have also rented units while waiting for their new homes to be completed or for prices to drop before buying a new home, ”she said.

Rents for HDB apartments rose for the 17th consecutive month last month – by 0.8% – in all apartment types in both mature and non-mature areas.

Compared with November of last year, HDB rents were 9.2 percent higher.

Other HDB apartments were also let last month, up 2.6% to 1,792 units, up from 1,746 units in September.

Huttons Asia Managing Director Mark Yip noted that the increase in rents in both segments could have been supported by the increase in rental volume.

Mr. Yip expects the rental market as a whole to continue to benefit as more companies bring in professionals to work in Singapore through the various VTLs in the coming months.

Ms. Sun of OrangeTee shared similar sentiments: “Unless there are further developments of the Omicron variant, and if border controls are not significantly tightened, rental demand is set to rebound stronger next year. , as international air travel continues to be restored. “

She expects rents in both segments to increase at a faster rate of about 8% to 11% over the next 12 months.