Declining rents for private homes in the Outside Central Region (OCR) may have a spillover effect on the HDB rental market, according to OrangeTee.
“As rents in the OCR become more affordable, some tenants may consider moving to private condominiums. This would sap demand from the HDB market and put downward pressure on rents,” the consultancy said.
However, a sharp correction in rents is not expected in the short term, as Singapore’s economic outlook is still bright and landlords will likely resist any sharp drops in rents.
Overall private rents across the country are expected to continue falling in view of increasing supply, especially in the OCR segment, where rents are expected to experience increasing pressure on the back of record supply in the pipeline in 2015 and 2016.
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