Rental yield falls for non—landed private property

SINGAPORE: The rental yield for non—landed private property went down by 0.2 percentage points in the last 10 months, compared to the same period last year.

According to statistics from the Singapore Real Estate Exchange (SRX), this brings the rental yield to 4.03 per cent.

This is even though average rental rose by two per cent in the first 10 months, to reach about S$3.80 per square foot.

In October alone, the average monthly rental was about S$3.89 per square foot.

Analysts said this is due to rental being unable to catch up with rising property prices.

With more private properties expected to be completed next year and the government’s tightening of foreign manpower, analysts said rental yield will continue to fall.

This as the economy slows and demand for private property decreases.

The rental yield for October alone was 3.87 per cent and analysts expect it to dip to 3.5 per cent in June next year.

— CNA/ck