Good News - Trend seen in Condo rents going down!!!

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
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sundaymorningstaple
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Post by sundaymorningstaple » Sun, 06 Jan 2008 12:44 am

Then give me anecdotal evidence of rentals going down. That's all I've asked for. So far you haven't done that either. You've only given me anecdotal evidence of slower increases. You don't see that? However, for everybody's sake I hope you are right. :) Unfortunately, I doubt very seriously that your crystal ball is all that accurate either.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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taikoo
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Post by taikoo » Mon, 07 Jan 2008 2:09 pm

Let me clarify here....

Rents are coming down, yes, from their peaks. No longer the landlords are able to reach newer peaks in their demands ('greed'). There is general increase in cost of living for which I am ready to apportion additional portion of my salary but not for the obscene increases in rentals due to lack of transparency.

By starting this thread here, my intention is to pave way for anecdotal evidence. You know there is a term called 'cascading effect'? This is what I and morphic are seeing to accelerate in the coming months.

SouthKiwi
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Purchase increase = Rental increases

Post by SouthKiwi » Mon, 07 Jan 2008 2:25 pm

I’m not surprised that rents are going up – I looked at moving to Singapore in April last year (job was offered, then restructure meant role disappeared under my feet). I loaded all condos from two districts into xls. I also did same last week (looking to move again!) and noted:

1) Total number of available condo rose from 724 to 1110 = you would expect that this would lead to lower rents ??
2) Average purchase price increased by 32%
3) Average purchase price per bedroom rose from $380k to $509k
4) I removed one large TOP development and the average price rose by 37% !
5) Average area also decreased by 5% at same time (less for more)

Looking at remuneration – this equates to additional $21k per year to service average mortgage. This is $1,750 extra per month which is certainly less than the rental increases would demand. I suspect investors are buying these and looking to get high rental to pay for mortgage based on speculative buying with little or no deposits.

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sundaymorningstaple
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Post by sundaymorningstaple » Mon, 07 Jan 2008 2:31 pm

taikoo wrote:Let me clarify here....

Rents are coming down, yes, from their peaks. No longer the landlords are able to reach newer peaks in their demands ('greed'). There is general increase in cost of living for which I am ready to apportion additional portion of my salary but not for the obscene increases in rentals due to lack of transparency.

By starting this thread here, my intention is to pave way for anecdotal evidence. You know there is a term called 'cascading effect'? This is what I and morphic are seeing to accelerate in the coming months.
Just as clear as mud. I have to assume that English is not you first language. Your very first statement "Rents are coming down, yes, from their peaks." You have yet to give us any anecdotal evidence or hard evidence of this. Show me a single instance where the rent being asked for is lower that the last rent for the same unit. If you can then I might concede that some rentals are coming down. They are not at their peaks yet. If a property hasn't been let at a rate lower that the last contract, then it's rental is not coming down. You cannot count wishful thinking as peaks rates anymore than you can say a 20-50% increase is showing signs of decreasing rents. I think you are confusing the term "cascading effect" which is what happens when somebody slags off a stock at a loss and twitchy sellers follow suit driving prices even lower because of the fear of greater loss creating eventually a downward run. As long as a stock or property is still being marketed at a price higher than the previously transacted price, you still have an increase in rental costs.

If my costs are still the same, and I am asking 5000 for a property that I lasted rented out for 3000, but I settled for 3500, Is my profit more or less that my last contract? If it's more then obviously it's not a decrease in peak prices is it? :roll:
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by Ebony Chic » Sun, 07 Sep 2008 5:36 pm

We have not yet arrived in Singapore as my hubby's start date has not been finalized. But I am concerned about rents and potential increases to rents so here are a couple of questions.

A. If we sign a one year contract on an apartment, can the landlord increase the rent, let's say, after 6 months into the contract?

B. Are rental increases as common in HDB flats as in privately rented ones?

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Post by GarethC » Tue, 09 Sep 2008 1:19 pm

A. If we sign a one year contract on an apartment, can the landlord increase the rent, let's say, after 6 months into the contract?

B. Are rental increases as common in HDB flats as in privately rented ones?
A. No they can't, otherwise why would you sign a contract?

B. Yes at the moment, a lot of condo dwellers "downgraded" to HDBs and have pushed up rental rates

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