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Rental prices has narrowed between HDB and suburban condo rental in currently sluggish property market. The difference between a suburban condo and a 5 room HDB flat currently cost probably about $500 difference today, compared to 5 years ago which is probably about $1,000 different previously.

Rental in HDB rental is more resilient against property downtrend as often is like a "roof over your head". Nothing on the market rental comes lower than a HDB flat which still contribute to its supply and demand. 

The drop in rental prices for suburban condo and HDB could also be due to the drop in condo sizes which contibute to lower cost to owner and also thus also their willingness to lower their rental price.This downtrend pressure is expected to continue as more Projects TOP and also drop in expats as company continue their layoff in banking and also oil and gas industry.

District 9 and 10 rental prices is more affected by this current sluggish market. Rental yield is much lower in district 9 and 10 due to its higher quantum and bigger size unit. This drop in rental price will probably achieve rental yeild of less than 2% for home owners.

 


Written by Siang Teck of Property Review. I can be contacted at [email protected]