Condo rents dip 1.3% y-o-y in 1Q2024, on track to fall 5% this year: Savills

Average median rents in District 2 – covering the Chinatown and Tanjong Pagar areas – saw the biggest drop in 1Q2024, falling 12.3% q-o-q (Picture: Samuel Isaac Chua/The Edge Singapore)

Singapore condo rents have fallen from a year ago, according to data compiled by Savills Research. In its 1Q2024 Rental Guide released on May 7, the consultancy highlights that average rents for private non-landed properties contracted 1.3% y-o-y in 1Q2024, in contrast with the 4.8% surge recorded in 1Q2023.

Excluding outliers, Savills says condo rents fell by 1.8% q-o-q, extending the 1.5% quarterly decline logged in 4Q2023. Savills’ rental guide, which tracks average median rents for three-bedroom condo units across the island, indicates that District 2 — covering the Chinatown and Tanjong Pagar areas — saw the biggest drop in rents, falling 12.3% compared to the previous quarter to $6,800 per month.

District 5, spanning the Buona Vista, West Coast and Clementi areas, saw the second-biggest quarterly drop at 8.6% to $5,300 per month, followed by District 3, covering the Alexandra and Commonwealth areas, which fell 6.1% to $6,200 per month.

Elsewhere, Savills notes that rents have continued to soften in District 1, which covers the Boat Quay, Marina Bay and Raffles Place areas. The district had an average median monthly rent of $8,500 for a three-bedroom unit, compared to $9,000 the previous quarter.

On the other hand, average median rents for three-bedroom units rose in District 7 (Beach Road, Bugis and Rochor), District 26 (Mandai and Upper Thomson) and District 11 (Newton and Novena). District 7 saw rents grow 9.8% q-o-q to $7,250 per month; while rents in District 26 grew 8.5% to $4,450 per month. Rents in District 11 grew 8.2% q-o-q to $6,600 per month.

Despite the mixed movements, Alan Cheong, executive director for research and consultancy at Savills Singapore, observes that overall, rents have adjusted downwards “in a well-mannered fashion” in recent months, with gradual declines across unit types.

While average median rents for three-bedroom units have seen the biggest drop, rents for one- and two-bedders — which are popular among renters — are also falling. Altogether, rents for one- to three-bedroom units slid 2.1% q-o-q in 1Q2024, led by the Rest of Central Region which fell 3.5%, followed by the Outside Central Region (down 1.8%) and the Core Central Region (down 1.4%).

Cheong sees the easing rents in line with Savills’ projection for the full year, as new supply of condo units is expected to continue putting downward pressure on rents. Savills is forecasting private residential rents to fall 5% y-o-y for the whole of 2024.