Leasing demand for S’pore residential properties remains robust

SINGAPORE: Leasing demand for residential properties in Singapore remained robust in the first two months of this year as transactions hovered above 3,000 each month, according to Savills Research.

Its data showed that there were 3,446 leasing transactions in February 2012, down 5 percent on—month. But Savills said February’s transactions were still higher than the 2,767 transactions recorded a year ago.

Based on deals closed by Savills, the average rent for studio apartments and one—bedroom units was S$6.21 per square foot per month in Q1 2012.

Savills said selected small—format units were seen fetching attractive rents, particularly for the centrally—located properties.

These included a 600—square—foot unit at The Suites at Central along Devonshire Road, which was rented for S$5,000 per month.

It was followed by two 592—square—foot units at Martin Place Residences along Martin Road, which were let at S$4,200 per month.

By square footage, the highest rent was for a 458—square—foot studio apartment at Iluminaire on Devonshire which was rented at S$8.73 per square foot per month.

Savills said rents were equally attractive among the smallest units.

Three 334—square—foot units at Prestige Heights along Balestier Road were let for between S$2,200 and S$2,450 per month or between S$6.40 and S$7.34 per square foot per month.

Based on data released by the Urban Redevelopment Authority, island—wide median rents of all non—landed properties, excluding executive condominiums, continued to rise to S$3.53 per square foot per month in February, increasing 1 percent on—month and 8 percent on—year.

Savills said the leasing transaction value for the first two months has reached S$35 million, 15 percent higher than the previous year.

The average monthly rent of high—end non—landed residential properties tracked by Savills was S$5.17 per square foot per month in Q1 2012, dipping 2 percent on—quarter.

On a year—on—year basis, prime rents fell 5 percent from S$5.45 per square foot per month in Q1 2011.

Savills added that with a continual relocation of expatriates from troubled economies in the West, leasing demand continues to strengthen in Singapore, putting greater upward pressure on rents.

— CNA/al