Private Home Rent Analysis Report As At March 2011

Market Analysis As At March 2011

More deals doesn’t mean higher income for landlords

Tenant resistance setting in

Continuing from where I left off in the last rental report (which was incorporated in the April issue of the ‘Property Market Direction’), I am maintaining that keen competition has kept private rental rate at bay, causing certain level of frustration among individual landlords. The ample supply of newly completed (or TOP) quality condos and apartments (see Table [5]) has provided the fuel for the keen competition among landlords, especially in prime areas. While the total rental transactions and rental value (in dollar term) have both gone up (refer to Table [3-A] and Table [3-B]), they have yet to translate into higher income for the expectant investors.

STRONGER Q1 2011 OVERALL RENTAL PERFORMANCE

It is apparent that the strong economic recovery has led to stronger demand for private rental apartments in the first quarter (Q1) of 2011, as can be seen in the rise in the total volume in rental transactions in this quarter (noticeably in both January and March 2011, February being a very short month).

Table [3-A] below shows the demand for private apartments for rent and the total rental values (rents collected in Singapore dollars) for the 3-month period between October 2010 and December 2010 (i.e. Q4 2010). Table [3-B] shows the situation in the first quarter of 2011.

TABLE [3-A] – DEMAND FOR PRIVATE APARTMENTS FOR RENT IN Q4 2010
PERIOD MONTHS No. of rental transactions Total transaction value ($)

Q4 2010

Oct-10 3,240 13,641,731
Nov-10 2,895 12,006,608
Dec-10 2,864 11,950,001
Total 8,999 37,598,340
Statistics gleaned from URA Realis and compiled by Sam Gian

TABLE [3-B] – DEMAND FOR PRIVATE APARTMENTS FOR RENT IN Q1 2011
PERIOD MONTHS No. of rental transactions Total transaction value ($)
Q1 2011 Jan-11 3,333 14,197,052
Feb-11 2,493 10,908,346
Mar-11 3,263 14,399,175
Total 9,089 39,504,573
Statistics gleaned from URA Realis and compiled by Sam Gian

Comparatively, the demand for apartments in March 2011 actually dropped by 70 deals (or -2.1%), though the rents collected from a slightly smaller pool of landlords actually went up by $202,123 (or 1.42%) over the total transaction value of January 2011. The stronger demand for high end apartments in D9 and D10 in March 2011 explains the phenomena. (See Table [3-C])

As February 2011 was a much shorter month, it will be moot to compare the data between February and March 2011. A more meaningful comparison will be between January 2011 and March 2011.

LANDLORDS IN PRIME DISTRICTS ARE THE HAPPIER LOT IN TERMS OF RENTS COLLECTED

TABLE [3-C] – COMPARISON OF MONTHLY RENTS BETWEEN JAN 2011 AND MAR 2011
Red denotes FALL in Rent Blue denotes RISE in Rent

DISTRICT MONTHLY RENTAL VALUE ($)
MAR 2011 FEB 2011 JAN 2011 DEC 2010 NOV 2010 OCT 2010
1 482,279 442,750 668,491 364,850 492,190 463,900
2 207,650 135,100 176,825 146,950 199,401 186,050
3 521,692 243,725 528,436 423,666 421,119 569,895
4 530,365 279,450 411,975 414,450 319,878 401,340
5 786,150 530,582 943,030 642,520 705,283 747,525
6 13,082 17,400 6,725 8,400 8,600 14,100
7 125,750 152,500 112,700 117,675 122,120 150,827
8 395,650 264,430 282,900 248,925 211,960 264,130
9 2,462,659 1,851,898 1,981,844 1,659,297 1,562,866 2,040,735
10 2,924,865 2,119,111 2,579,477 2,147,687 2,193,310 2,609,717
11 686,271 620,235 736,688 688,520 783,600 819,833
12 328,070 248,750 363,005 399,800 359,430 327,350
13 59,110 59,400 65,850 49,300 52,850 101,050
14 539,517 373,727 542,080 558,630 544,030 635,830
15 1,522,040 1,402,430 1,710,087 1,374,903 1,368,766 1,458,609
16 511,288 368,839 559,863 522,380 520,475 579,689
17 181,500 122,170 128,220 154,488 184,980 124,625
18 185,467 119,788 149,500 168,225 185,700 208,140
19 297,300 250,790 405,041 369,270 292,700 331,696
20 186,150 130,171 216,215 181,750 168,330 176,800
21 561,630 390,130 620,150 488,115 513,455 573,980
22 327,050 325,450 382,380 207,450 255,265 265,330
23 388,710 288,120 411,770 408,500 331,000 370,180
25 29,700 28,750 50,900 26,900 36,350 40,950
26 56,650 52,800 65,150 73,900 68,650 78,650
27 52,180 76,600 72,550 66,650 77,150 57,700
28 36,400 13,250 25,200 36,800 27,150 43,100
TOTAL 14,399,175 10,908,346 14,197,052 11,950,001 12,006,608 13,641,731
Statistics gleaned from URA Realis and compiled by Sam Gian

In terms of rents collection (rental value), 16 districts experienced falling rental value in March 2011; while landlords in 12 other districts are happier in the March 2011 compared with two months ago (See Table [3-C]). On the other hand, the vast majority of districts with falling rents also experienced falling rental transactions as well. Let’s look at the March 2011 figures from a different perspective at Table [3-D].

TABLE [3-D] – COMPARISON OF RESIDENTIAL DISTRICTS WITH FALLING RENTS (ABSOLUTE DOLLAR) AND DECLINING TRANSACTIONS
DISTRICTS WITH FALLING RENTS DISTRICTS WITH FALLING RENTAL TRANSACTIONS
D1, D3, D5, D11 D1, D3, D5, D11
D13 D12
D14 D13
D15, D16 D15, D16
D19- D23 D19- D23
D25 – D27 D25 – D27
Statistics gleaned from URA Realis and compiled by Sam Gian

LANDLORDS IN PRIME DISTRICTS ARE CLOSING MORE DEALS THAN THOSE IN THE OUTER DISTRICTS

Table [3-E] below shows a broader perspective of the rental transactions across the different 28 residential districts in Singapore over a 6-month period (between Oct last year and March 2011). Again, the statistics on rental volume are consistent with those of rental value. Districts 2 (CBD), 4 (Keppel bay and Sentosa Cove), 9 and 10 (prime districts) saw more apartments rented out in March 2011, compared with condos in outlaying areas.

The statistics confirm that D2, D4, D9 and D10 were the few popular districts which performed a cut above the rest.

TABLE [3-E] – COMPARISON OF RENTAL TRANSACTION VOLUME BETWEEN JAN 2011 AND MAR 2011
Red denotes FALL in Rent Blue denotes RISE in Rent

DISTRICT MONTHLY RENTAL TRANSACTIONS
MAR 2011 FEB 2011 JAN 2011 DEC 2010 NOV 2010 OCT 2010
1 97 86 129 77 102 99
2 48 33 42 37 44 47
3 121 56 127 96 104 128
4 86 45 70 69 56 65
5 198 139 263 175 184 213
6 2 3 1 2 2 2
7 34 40 29 32 34 40
8 111 69 84 74 67 82
9 391 309 347 283 285 365
10 461 339 403 338 334 407
11 149 128 158 143 167 151
12 99 74 105 117 104 100
13 20 19 21 19 17 36
14 179 120 168 180 169 206
15 379 329 402 342 350 365
16 155 116 166 162 164 180
17 64 44 46 59 69 46
18 57 40 48 57 63 67
19 98 83 131 119 94 109
20 55 40 62 51 48 54
21 165 116 186 148 158 174
22 98 103 124 63 83 82
23 137 101 147 148 123 140
25 10 10 16 10 12 17
26 19 18 23 25 24 28
27 20 28 26 25 27 23
28 10 5 9 13 11 14
TOTAL 3,263 2,493 3,333 2,864 2,895 3,240
Statistics gleaned from URA Realis and compiled by Sam Gian
FINDING – This proves that the rise in the overall number of rental transactions and overall increase in private home rents (in dollar value) occurred only in a few concentrated areas – namely, District 2 (the central business district), District 4 (including the Keppel Bay area and Sentosa Cove), District 9 and 10 (prime residential areas).

The statistics also demonstrated the increasing allure of high-end private apartments in the prime districts amidst an improving economy.

COMPARING CURRENT MEDIAN MONTHLY PSF RENT WITH THE PREVIOUS QUARTER

The following comparative studies seek to ascertain whether individual landlords are better off with the current median monthly rent (the most likely rent that investors will collect) when the rents are compared with the previous quarter’s performance (Table [4]) and with the income level during the 2007 market bull-run (Table [4-A]).

Table [4] – Q1 2011 MEDIAN PSF MONTHLY RENTS ARE COMPARED WITH THOSE OF THE PREVIOUS QUARTER AT Q4 2010
Red denotes FALL in Rent Blue denotes RISE in Rent

MEDIAN RENT AT PSF PER MONTH ($)
DIST PROJECT NAME Q1 2011 Q4 2010
1 1 EMERALD GARDEN 3.96¬ 3.81
2 THE SAIL @ MARINA BAY 5.66 5.7
2 3 ICON. 6.74¬ 6.5
4 INTERNATIONAL PLAZA 3.53¬ 3.27
3 5 THE ANCHORAGE 3.12¬ 3.07
6 CENTRAL GREEN CONDO 3.48 3.67
7 EMERALD PARK 3.75¬ 3.54
8 QUEENS 4.12 4.13
9 RIVER PLACE 4.84¬ 4.58
10 TANGLIN VIEW 4.31¬ 4.3
4 11 THE BERTH BY THE COVE 4.54 5.09
12 CARIBBEAN AT KEPPEL BAY 5.4 5.4
13 FAIRWAYS *<10 2.41
14 HARBOURLIGHTS 3.95¬ 3.92
5 15 BLUE HORIZON 3.74 3.75
16 DOVER PARKVIEW 3.52¬ 3.48
17 HERITAGE VIEW 3.72¬ 3.51
18 NORMANTON PARK 2.71¬ 2.62
19 PARK WEST 2.48¬ 2.44
20 REGENT PARK 3.22 3.31
21 VISTA PARK 3.09 3.1
7 22 THE BENCOOLEN 4.76¬ 4.53
23 BURLINGTON SQUARE 4.19¬ 4.17
8 24 CITYLIGHTS 5.55¬ 5.31
25 KERRISDALE 3.55 3.57
9 26 8 @ MOUNT SOPHIA 5.66 5.95
27 ASPEN HEIGHTS 3.90 3.92
28 CAIRNHILL CREST 4.49 5.24
29 CAIRNHILL PLAZA *<10 2.9
30 HORIZON TOWER *<10 3.02
31 THE IMPERIAL 5.67 5.82
32 KIM SIA COURT 3.22¬ 3.13
33 LEONIE GARDENS *<10 3.55
34 MIRAGE TOWER 4.01¬ 3.83
35 PARC EMILY 4.77 5.04
36 PATERSON RESIDENCE 5.33 5.9
37 THE PIER AT ROBERTSON 6.90¬ 6.7
38 RIVERGATE 5.26 5.33
39 ROBERTSON 100 5.49 5.57
40 SCOTTS 28 4.49 4.85
41 THE SUITES AT CENTRAL *<10 4.84
42 TIARA 4.24¬ 3.86
43 UE SQUARE 3.75 3.84
44 URBANA *<10 5.7
45 VIDA *<10 6.82
46 VISIONCREST 6.70¬ 6.42
47 WATERMARK ROBERTSON QUAY 4.93 5.16
48 YONG AN PARK 4.19 4.28
10 49 ARDMORE PARK 6.16¬ 5.78
50 ASTRID MEADOWS 4.40¬ 4.25
51 BELMOND GREEN 4.21¬ 4.2
52 DUCHESS CREST 3.99 4.16
53 FOUR SEASONS PARK 4.87 5.09
54 LEEDON HEIGHTS 2.01 2.01
55 PINEWOOD GARDENS 3.47 3.5
56 THE LEVELZ *<10 4.86
57 THE MONTANA 4.22 4.66
58 THE MARBELLA 4.50 4.82
59 REGENCY PARK 3.95 4.01
60 RIDGEWOOD 2.88¬ 2.47
61 SOMMERVILLE PARK 3.54¬ 3.5
62 SPANISH VILLAGE *<10 3.04
63 SPRING GROVE 4.22¬ 3.99
64 TANGLIN PARK 4.68¬ 4.32
65 THE TESSARINA 3.71¬ 3.54
66 VALLEY PARK 3.60 3.7
11 67 AMARYLLIS VILLE 4.92¬ 4.84
68 PARK INFINIA AT WEE NAM 5.16¬ 4.89
69 RESIDENCES @ EVELYN 5.37¬ 5.22
70 THOMSON 800 3.08¬ 2.84
71 THOMSON EURO-ASIA 4.40 4.49
12 72 OLEANDER TOWERS 3.39¬ 3.29
73 TRELLIS TOWERS 3.39¬ 3.37
14 74 ASTORIA PARK 3.18¬ 3.16
75 CASA SARINA *<10 2.41
76 CENTRAL GROVE 2.93 2.93
77 SIMSVILLE 2.99¬ 2.86
78 THE SUNNY SPRING 2.71 2.71
79 THE TRUMPS 3.68¬ 3.22
80 THE WATERINA 3.07¬ 2.95
81 WING FONG MANSIONS 2.28¬ 2.27
15 82 COSTA RHU 3.13 3.28
83 COTE D'AZUR 3.82¬ 3.81
84 EASTERN LAGOON 2.90 3.22
85 FERNWOOD TERRACE 2.25 2.39
86 THE MAKENA 2.82 2.88
87 MANDARIN GARDEN CONDO 2.87 2.96
88 NEPTUNE COURT 2.25¬ 2.16
89 PEBBLE BAY 3.54 3.61
90 SANCTUARY GREEN 3.91 4.13
91 THE SEA VIEW 4.01¬ 3.76
92 VILLA MARINA 2.91 3.2
93 WATER PLACE 3.52 3.6
94 THE WATERSIDE 3.01 3.25
16 95 AQUARIUS BY THE PARK 2.99¬ 2.78
96 BAYSHORE PARK 3.20¬ 3.14
97 THE BAYSHORE 3.01 3.02
98 CHANGI COURT 2.73¬ 2.62
99 CHANGI GREEN 2.58¬ 2.42
100 THE CLEARWATER *<10 2.72
101 COSTA DEL SOL 3.69¬ 3.52
102 EAST MEADOWS 3.02¬ 2.97
103 SUNHAVEN 2.63 2.66
104 TANAMERA CREST *<10 2.9
17 105 AZALEA PARK CONDO 2.13¬ 2.05
106 BALLOTA PARK CONDO 2.08¬ 2.07
107 CARISSA PARK CONDO 2.49¬ 2.46
108 EDELWEISS PARK CONDO 2.90¬ 2.65
109 ESTELLA GARDENS 2.55¬ 2.42
110 FERRARIA PARK CONDO 2.85 2.89
111 LOYANG VALLEY 2.16¬ 1.97
18 112 CHANGI RISE CONDO 2.80¬ 2.68
113 EASTPOINT GREEN 2.92¬ 2.83
114 MELVILLE PARK 2.51¬ 2.5
115 SAVANNAH CONDOPARK 3.04 3.05
19 116 CHILTERN PARK 2.56 2.69
117 CHUAN PARK 2.38¬ 2.19
118 COMPASS HEIGHTS 3.08 3.14
119 KOVAN MELODY 3.53¬ 3.36
120 REGENTVILLE 2.55 2.55
121 RIO VISTA 2.48¬ 2.47
122 THE SPRINGBLOOM 2.81¬ 2.77
123 SUNGLADE 3.57 3.57
20 124 BISHAN 8 3.35¬ 3.25
125 THE GARDENS AT BISHAN 3.10¬ 3.04
126 GRANDEUR 8 3.18¬ 3.01
127 RAFFLESIA CONDOMINIUM *<10 3.45
21 128 ASTOR GREEN *<10 2.83
129 THE BLOSSOMVALE 2.87¬ 2.7
130 CAVENDISH PARK *<10 3.26
131 CLEMENTI PARK 2.63¬ 2.33
132 GARDENVISTA 3.77¬ 3.75
133 HILLVIEW GREEN 2.16¬ 2.1
134 HUME PARK I 2.35¬ 1.93
135 MAPLEWOODS 3.02 3.11
136 PANDAN VALLEY 2.44¬ 2.26
137 PARC PALAIS 2.36 2.42
138 PINE GROVE 2.26 2.29
139 SIGNATURE PARK 2.29¬ 2.26
140 SOUTHAVEN II 2.48¬ 2.36
141 SPRINGDALE CONDO 2.61¬ 2.48
142 SUMMERHILL 2.68¬ 2.47
143 SYMPHONY HEIGHTS 2.48¬ 2.38
22 144 THE CENTRIS 3.50 3.59
145 THE LAKESHORE 3.57 3.65
146 THE MAYFAIR 3.24¬ 2.91
147 PARC OASIS 2.75¬ 2.61
148 PARC VISTA 2.73¬ 2.72
23 149 CASHEW HEIGHTS 1.97 1.97
150 THE DAIRY FARM 2.16¬ 1.78
151 GLENDALE PARK 2.25 2.32
152 GUILIN VIEW 2.70¬ 2.62
153 HAZEL PARK CONDO 2.10 2.11
154 THE JADE 3.51 3.55
155 MAYSPRINGS 2.69¬ 2.42
156 NORTHVALE 2.42¬ 2.36
157 PALM GARDENS 2.22 2.22
158 PARKVIEW APARTMENTS 2.51¬ 2.46
159 REGENT GROVE 2.55¬ 2.54
160 REGENT HEIGHTS 2.54¬ 2.44
161 THE WARREN 2.90¬ 2.72
25 162 CASABLANCA 2.87¬ 2.72
163 ROSEWOOD 2.71¬ 2.55
26 164 BULLION PARK 2.85¬ 2.71
165 CASTLE GREEN 2.82¬ 2.73
166 SEASONS PARK 2.55¬ 2.49
27 167 ORCHID PARK CONDO 2.48¬ 2.37
SOURCE OF DATA: URA WEBSITE

*<10 denotes less than 10 rental transactions in the quarter

FINDING: Out of the 167 condo projects selected for this case study, 92 (or 55.1%) enjoyed higher median rent in Q1 2011 compared with Q4 2010; 52 projects (or 31.1%) suffered lower median rent; 8 projects (or 4.9%) had stagnant median rent, and15 projects (or 8.9%) did not have at least 10 rental transactions in a quarter to make the cut into the URA quarterly rental record.

Ironically, despite enjoying the highest rental transaction volume in March 2011 (refer to Table [3-C] and [3-E]), many prime district projects had experienced falling median rents in Q1 2011. For example, among the 23 selected prime district projects in District 9, 12 projects (or 23.1% of the aforesaid 52 projects with lower median rents) had lower median rents, 5 projects (or 5.4%) had higher median rents; and 6 projects (or 60%) out of the aforesaid 10 projects that did not make the cut into the URA quarterly record were in District 9.

This can only mean that there has been very keen competition for tenants in the prime districts where ample supply of newly completed quality condos are materialising.

Table [4-A] – Q1 2011 MEDIAN PSF MONTHLY RENTS COMPARED WITH MEDIAN PSF MONTHLY RENTS AT THE HEIGHT OF THE LAST MARKET BULL RUN - Q4 2007
Red denotes FALL in Rent Blue denotes RISE in Rent


MEDIAN RENT AT PSF PER MONTH ($)
DIST PROJECT NAME Q1 2011 Q4 2007
1 1 EMERALD GARDEN 3.96 4.85
2 2 INTERNATIONAL PLAZA 3.53¬ 3.08
3 3 THE ANCHORAGE 3.12 3.25
4 CENTRAL GREEN CONDO 3.48 3.72
5 EMERALD PARK 3.75¬ 3.73
6 QUEENS 4.12 4.56
7 RIVER PLACE 4.84 5.35
8 TANGLIN VIEW 4.31 4.98
4 9 CARIBBEAN AT KEPPEL BAY 5.40 6.24
5 10 BLUE HORIZON 3.74 4.01
11 DOVER PARKVIEW 3.52 3.74
12 HERITAGE VIEW 3.72 3.87
13 NORMANTON PARK 2.71¬ 2.62
14 PARK WEST 2.48¬ 2.45
15 REGENT PARK 3.22 3.23
7 16 THE BENCOOLEN 4.76 4.92
17 BURLINGTON SQUARE 4.19 4.76
9 18 ASPEN HEIGHTS 3.90 4.02
10 19 DUCHESS CREST 3.99 4.46
20 LEEDON HEIGHTS 2.01 2.04
21 RIDGEWOOD 2.88 2.32
22 SOMMERVILLE PARK 3.54 3.64
23 SPRING GROVE 4.22 4.9
24 TANGLIN PARK 4.68 4.95
25 THE TESSARINA 3.71 4.22
26 VALLEY PARK 3.60 4.11
12 27 OLEANDER TOWERS 3.39 3.1
28 TRELLIS TOWERS 3.39 3.94
14 29 ASTORIA PARK 3.18¬ 3.16
30 SIMSVILLE 2.99¬ 2.57
31 THE SUNNY SPRING 2.71 2.25
32 THE WATERINA 3.07 3.3
15 33 COSTA RHU 3.13 3.39
34 COTE D'AZUR 3.82 4.15
35 EASTERN LAGOON 2.90 3.34
36 THE MAKENA 2.82 3.19
37 MANDARIN GARDEN 2.87¬ 2.85
38 NEPTUNE COURT 2.25¬ 2
39 PEBBLE BAY 3.54 3.99
40 SANCTUARY GREEN 3.91 4.26
41 VILLA MARINA 2.91¬ 2.9
42 WATER PLACE 3.52 4.34
43 THE WATERSIDE 3.01 3.16
16 44 AQUARIUS BY THE PARK 2.99¬ 2.78
45 BAYSHORE PARK 3.20¬ 3.17
46 THE BAYSHORE 3.01 3.16
47 CHANGI COURT 2.73¬ 2.31
48 CHANGI GREEN 2.58¬ 2.28
49 COSTA DEL SOL 3.69 3.69
50 EAST MEADOWS 3.02¬ 2.98
17 51 BALLOTA PARK CONDO 2.08¬ 1.96
52 CARISSA PARK CONDO 2.49¬ 2.26
53 EDELWEISS PARK CONDO 2.90¬ 2.64
54 ESTELLA GARDENS 2.55¬ 2.18
55 LOYANG VALLEY 2.16¬ 1.84
18 56 EASTPOINT GREEN 2.92¬ 2.73
57 MELVILLE PARK 2.51¬ 2.3
19 58 CHILTERN PARK 2.56¬ 2.37
59 CHUAN PARK 2.38¬ 2.03
60 COMPASS HEIGHTS 3.08¬ 2.6
61 KOVAN MELODY 3.53 3.82
62 REGENTVILLE 2.55¬ 2.14
63 SUNGLADE 3.57¬ 3.18
20 64 THE GARDENS AT BISHAN 3.10 3.19
21 65 CLEMENTI PARK 2.63¬ 2.34
66 MAPLEWOODS 3.02 3.57
67 PANDAN VALLEY 2.44¬ 2.28
68 PARC PALAIS 2.36¬ 2.29
69 PINE GROVE 2.26¬ 2.11
70 SIGNATURE PARK 2.29¬ 2.42
71 SOUTHAVEN II 2.48¬ 2.51
72 SPRINGDALE CONDO 2.61 2.65
73 SYMPHONY HEIGHTS 2.48¬ 2.45
22 74 THE LAKESHORE 3.57 3.88
75 THE MAYFAIR 3.24¬ 2.97
76 PARC OASIS 2.75¬ 2.7
77 PARC VISTA 2.73¬ 2.6
23 78 CASHEW HEIGHTS 1.97¬ 1.69
79 GLENDALE PARK 2.25¬ 2.19
80 GUILIN VIEW 2.70¬ 2.55
81 MAYSPRINGS 2.69¬ 2.38
82 NORTHVALE 2.42¬ 2.14
83 PARKVIEW APARTMENTS 2.51¬ 2.35
84 REGENT GROVE 2.55¬ 2.2
85 REGENT HEIGHTS 2.54¬ 2.47
26 86 BULLION PARK 2.85¬ 2.6
27 87 ORCHID PARK CONDO 2.48¬ 2.09
SOURCE OF DATA: URA WEBSITE

FINDING: Out of the 87 condo projects selected for this case study, 46 (or 53%) enjoyed higher median rent in Q1 2011 compared with Q4 2007; 40 projects (or 46%) suffered lower median rent; and only 1 project among the 87 selected projects experienced a flat median rent. Private home projects that received their TOP after Q4 2007 and projects that did not have at least 10 rental transactions to make the cut into the URA quarterly rental record were not selected for this case study.

The majority of condo projects that are still having median rents that lagged behind those enjoyed during the 2007 market bull-run are in popular areas due to the ample supply of new quality condos recently.

DID THE NEWLY COMPLETED RESIDENTIAL PROJECT FARE ANY BETTER IN INVESTMENT INCOME?

TABLE [5] – MODERATE RENTS RECEIVED BY LANDLORDS IN THE 23 SELECTED NEWER CONDO PROJECTS IN Q1 2011
PROJECTS RECEIVING TOP RECENTLY MEDIAN MONTHLY PSF/PER RENT ($)
Q1 2011 Q4 2010
1 MARINA BAY RESIDENCES 5.54 5.42
2 THE SAIL @ MARINA BAY 5.66 5.70
3 THE METROPOLITAN CONDO 3.90 4.05
4 THE REGENCY AT TIONG BAHRU *<10 3.97
5 THE AZURE 4.54 4.24
6 THE OCEANFRONT @ SENTOSA COVE 4.30 4.44
7 ONE-NORTH RESIDENCES 5.02 4.56
8 THE PARC 3.10 2.96
9 CITY SQUARE RESIDENCES 4.53 4.53
10 THE COSMOPOLITAN 5.06 5.06
11 TRIBECA *<10 5.03
12 THE TRILLIUM 4.93 -
13 WATERFORD RESIDENCE 3.78 4.31
14 ARDMORE II 4.78 -
15 ST REGIS RESIDENCES SINGAPORE 5.84 5.83
16 SKY@ELEVEN *<10 3.96
17 THE ARTE 3.06 3.10
18 DAKOTA RESIDENCES 3.64 3.54
19 AALTO 3.83 3.76
20 ONE AMBER 3.27 3.65
21 THE ESTA 3.40 -
22 THE SEAFRONT ON MEYER 3.60 3.49
23 CASA MERAH 3.30 3.27
SOURCE OF DATA: URA WEBSITE

*<10 denotes less than 10 rental transactions in the quarter

The take-up rate of new private apartments for rent was not as exciting as the recent economic numbers would have many landlords fantasizing. Slightly over 60% of the 23 new condo projects selected for this case study either experienced tenant resistance or suffered lower monthly psf rents. Below are the detailed numbers.

 MODERATE RISE IN MEDIAN MONTHLY PSF RENT

NINE (9) newly completed projects (or 39.1%) out of the 23 selected brand new TOP projects experienced moderate rise in the median PSF monthly rent.

Out of the rises, only one project, i.e. One-North Residences, enjoyed a 46 cents (or 10.1%) rise in the median monthly psf rent. The rest of the rises were moderate at best.

The other EIGHT (8) projects enjoyed 0.2% (St Regis Singapore), 0.9% (Casa Merah), 1.9% (Aalto), 2.2% (Marina Bay Residences), 2.8% (Dakota Residence), 3.2% (The Seafront on Meyer), 4.7% (The Parc), and 7.1% (The Azure) rises respectively.

 TENANT RESISTANCE

City Square Residences (in District 8) and The Cosmopolitan (in District 9) saw the same median monthly PSF rent in Q1 2011when compared with the previous quarter.

THREE (3) new projects (or 13%) did not ‘make it’ to the URA rental data for Q1 2011 as they had less than 10 rental transactions in the first 3 months of the year. This could mean tenant resistance against the high asking rents in those projects.

 PROJECTS WITH LOWER MEDIAN MONTHLY PSF RENT

SIX (6) newly completed projects (or 26%) out of the 23 selected brand new TOP projects experienced lower median monthly PSF rent in Q1 2011.

The median monthly PSF rent at District 9 Waterford Residences dropped 53 cents (or 12.3%) from $4.31 psf per month to $3.78 psf pm; and median monthly psf rent at District 15 One Amber dropped 38 cents (or 10.5%) from $3.65 psf pm to $3.27 psf pm.

The median monthly PSF rent at District 3 The Metropolitan dropped a moderate 15 cents (or 3.7%) from $4.05 psf pm to $3.90 psf pm; while The Oceanfront@Sentosa Cove also dropped moderately by 14 cents (or 3.2%) from $4.44 psf pm to $4.30 psf pm.

The median monthly PSF rent at District 12 The Arte dropped 4 cents (or 1.3%) from $3.10 psf pm to $3.06 psf pm; while rent at The Sail at Marina Bay dropped fractionally from $5.70 psf pm to $5.66 psf pm.

CONCLUSION

It is evident that prospective tenants are showing resistance against higher asking rents at newly completed condo projects.

With more than 30,000 private condos and apartments coming on stream in the next couple of years, individual landlords may see their investment income dropping rather than rising due to the ample supply of quality apartments for rent. At the end of the day, regardless of the general economy, it is the basic ‘demand/supply principle’ that dictates who has the last laugh.