And now..Prime rentals falling too

[It Continueth]

Looks like the prime area pain is not just limited to selling prices, even rentals are falling sharply.

Prime rents poised to ease further
JLL sees more falls over next half year but rest of market should stay stable
By Joyce Teo, Property Correspondent
THE surging rents in prime locations that have had expatriates screaming for the best part of a year look to be easing, with some condominiums already registering falls of up to 12 per cent.
The declines are expected to intensify over the next three to six months, reversing a trend that saw some rents double or treble during the property peak last year.

Consultant Jones Lang LaSalle (JLL) said increased supply from newly built condominiums and a weakening economy are behind the projected prime rent slide, although rents in other parts of Singapore should stay largely stable.

Expats have also been voting with their feet and abandoning pricey prime areas and moving to fringe locations - and nudging rents there up a little in the process, said Dr Chua Yang Liang, the firm's head of research (South East Asia).

Rents in the East Coast area, for example, rose 1.4 per cent in the first quarter but are now tipped to grow at a slower pace or even stay unchanged.

This is in contrast to prime areas, where landlords are feeling the chill of the new economic headwinds.

[Smart Me]

East Coast rents still rising? Must be those SG agents pushing East Coast - the most polluted beach - all the time. I'm American working in the west with kids at American school in Woodlands and those dumbass agents are still recommending East Coast! Thank goodness I have more reliable sources here.

Looks like the prime area pain is not just limited to selling prices, even rentals are falling sharply.

Prime rents poised to ease further
JLL sees more falls over next half year but rest of market should stay stable
By Joyce Teo, Property Correspondent
THE surging rents in prime locations that have had expatriates screaming for the best part of a year look to be easing, with some condominiums already registering falls of up to 12 per cent.
The declines are expected to intensify over the next three to six months, reversing a trend that saw some rents double or treble during the property peak last year.

Consultant Jones Lang LaSalle (JLL) said increased supply from newly built condominiums and a weakening economy are behind the projected prime rent slide, although rents in other parts of Singapore should stay largely stable.

Expats have also been voting with their feet and abandoning pricey prime areas and moving to fringe locations - and nudging rents there up a little in the process, said Dr Chua Yang Liang, the firm's head of research (South East Asia).

Rents in the East Coast area, for example, rose 1.4 per cent in the first quarter but are now tipped to grow at a slower pace or even stay unchanged.

This is in contrast to prime areas, where landlords are feeling the chill of the new economic headwinds.

[Silly JLL]

Looks like the prime area pain is not just limited to selling prices, even rentals are falling sharply.

Prime rents poised to ease further
JLL sees more falls over next half year but rest of market should stay stable
By Joyce Teo, Property Correspondent
THE surging rents in prime locations that have had expatriates screaming for the best part of a year look to be easing, with some condominiums already registering falls of up to 12 per cent.
The declines are expected to intensify over the next three to six months, reversing a trend that saw some rents double or treble during the property peak last year.

Consultant Jones Lang LaSalle (JLL) said increased supply from newly built condominiums and a weakening economy are behind the projected prime rent slide, although rents in other parts of Singapore should stay largely stable.

Expats have also been voting with their feet and abandoning pricey prime areas and moving to fringe locations - and nudging rents there up a little in the process, said Dr Chua Yang Liang, the firm's head of research (South East Asia).

Rents in the East Coast area, for example, rose 1.4 per cent in the first quarter but are now tipped to grow at a slower pace or even stay unchanged.

This is in contrast to prime areas, where landlords are feeling the chill of the new economic headwinds.

With HDB flats renting out for 2.5-3k how much do you expect prime rentals to fall(those below 10k). JLL seems to be contradicting themselves. For how long would rest of the market remain stable when rentals in prime areas are falling. Will not expats now start moving back to prime areas and thus cause falls in the rest of the market.  Very silly analysis by JLL.

[GGirl]

  I'd certainly agree landlords are getting cold feet and rentals even in East coast are falling.  We're in Meyer rd and when the question of renewing on our contract for 2,500sqft+ condo first came up in March, landlord floated the figure of $7,000.  That came down to $5,500-6,000 in April.  We stayed mum and looked around.

Just re-signed for another 2 years at $4,500. Lovely, but older, apartment and was very content.

Not sure how the journo defines "prime" and "fringe" areas in her article?

[Prime definitions]

These definitions drive me crazy as well. Prime strictly means 9, 10, 11 -some of them are not even near the city and skewed to western side of SG. Fringe probably means D12, 13, 14 the redlight districts but much nearer town than prime districts.

I'd certainly agree landlords are getting cold feet and rentals even in East coast are falling.  We're in Meyer rd and when the question of renewing on our contract for 2,500sqft+ condo first came up in March, landlord floated the figure of $7,000.  That came down to $5,500-6,000 in April.  We stayed mum and looked around.

Just re-signed for another 2 years at $4,500. Lovely, but older, apartment and was very content.

Not sure how the journo defines "prime" and "fringe" areas in her article?

[35%???]

I'd certainly agree landlords are getting cold feet and rentals even in East coast are falling.  We're in Meyer rd and when the question of renewing on our contract for 2,500sqft+ condo first came up in March, landlord floated the figure of $7,000.  That came down to $5,500-6,000 in April.  We stayed mum and looked around.

Just re-signed for another 2 years at $4,500. Lovely, but older, apartment and was very content.

Not sure how the journo defines "prime" and "fringe" areas in her article?

You mean rents have declined by 35% in the East Coast?Maybe you should call up the journalist and let her know and nexst thing you know the headlines will be "Rents crash 35%". That will be good news for all expats. They can now start flocking back to the dream Dist9-11 homes.

Or could it be the LL was trying his luck with 7k and the market rent could have been around 5k or so???

[Falling rents]

That is correct. The reason behind the "prime districts" coz these areas are mainly FREEHOLD land which brings a prestige that you own the land forever. Long stretches of freehold land along D9,10,11,21,23 along the northwestern side of Singapore (if you consider D1 as central). City fringe means D12,13,14 along the northeast part of SG and even though quite near to town, is not prestigious as these are traditionally complicated red light areas to the east of the city. East Coast is much further out in D15 and D16 and are mainly leasehold land along the beach - land rented from the govt for say 70 years left. Reason why prices have gone up quite a lot despite being leasehold is because expats love the beach and brings up the rental yield. From an tenant's perspective, he or she wouldn't care whether the land is freehold or leasehold.

These definitions drive me crazy as well. Prime strictly means 9, 10, 11 -some of them are not even near the city and skewed to western side of SG. Fringe probably means D12, 13, 14 the redlight districts but much nearer town than prime districts.

I'd certainly agree landlords are getting cold feet and rentals even in East coast are falling.  We're in Meyer rd and when the question of renewing on our contract for 2,500sqft+ condo first came up in March, landlord floated the figure of $7,000.  That came down to $5,500-6,000 in April.  We stayed mum and looked around.

Just re-signed for another 2 years at $4,500. Lovely, but older, apartment and was very content.

Not sure how the journo defines "prime" and "fringe" areas in her article?

[Not again]

I'd certainly agree landlords are getting cold feet and rentals even in East coast are falling.  We're in Meyer rd and when the question of renewing on our contract for 2,500sqft+ condo first came up in March, landlord floated the figure of $7,000.  That came down to $5,500-6,000 in April.  We stayed mum and looked around.

Just re-signed for another 2 years at $4,500. Lovely, but older, apartment and was very content.

Not sure how the journo defines "prime" and "fringe" areas in her article?

You forgot to tell us how much you were paying in your previous unit.

Was 7K a overly aggressive asking price and 5-6K a more realistic one. Was it your way of "feel better" by suggesting otherwise?

Let me guess, you were paying 2-3K before renewal, so that would put 5-6K more realistic than 7.
  

[To Not Again]

I think she/he is paying more than what she was paying earlier. But it is less than what she would have been asked for earlier this year (or late last year) when the rental market was tighter and hotter.

[GGirl]

 ;)Last 2 years I was paying 3.2K which eventually went up to $4,5K.

Yes, the landlord's initial 7K was only a request to us and was not achieved.  Having said that my neighours are paying $7K for the same size unit.  Don;t know what kind of condition or fittings it has, but feel we have a reasonable deal for a size and location that great for us.  It's a freehold property.  As these are more expensive generally than leasehold, landlords seem to think they can request more rental to cover thier mortgage, even if it doesen't benefit the tenant in the slightest